Iran, in line with the provisions of the deal will provide Pakistan 750 million cubic feet of gas per day for the next 25 years, to generate 4000MW of electricity.
The 900-km pipeline is being built between
Asalouyeh in southern Iran and
Iranshahr near the border with Pakistan and will carry the gas from Iran's
South Pars field.
The two countries signed the Operational Agreement (OA) and the Heads of Agreement (HOA), which deals with details regarding the transportation of gas to India “if and when India decides to join the project”. Under the provisions of the HOA, Pakistan will have the right to charge the transit fee for the transportation of gas to India.
Bandar-Abbas is a port city on the southern coast of Iran (Persia), on the Persian Gulf. The city occupies a strategic position on the narrow Straits of Hormuz, and it is the location of the main base of the Iranian Navy.