By Staff Reporter
KARACHI: Iran and Pakistan are reviving efforts to complete a long-delayed gas pipeline project, aimed at supplying 750 million to one billion cubic feet per day of natural gas to Pakistan for 25 years.
“We see political determination from Pakistan to complete the project,” Iran’s Consul General to Pakistan, Hassan Nourian, told reporters on Monday.
The 1,900 kilometer pipeline, initially agreed upon in 2010, has faced significant delays due to concerns about US sanctions. However, both countries are now working together to find a solution, with Pakistan recently giving the go-ahead to build an 80km segment of the pipeline.
Iran has already invested $2 billion in the project, constructing the pipeline on its territory. Pakistan, however, has yet to begin construction, citing international sanctions on Iran as the reason.
The completion of the project is crucial for Pakistan, which relies heavily on natural gas for heating and energy needs. The country’s domestic and industrial users are in dire need of cheap gas, as its own reserves dwindle and LNG deals make supplies expensive amidst high inflation.
Iran, with the world’s second-largest gas reserves after Russia, is keen to develop its export capabilities. However, sanctions by the West, political turmoil, and construction delays have slowed its progress.
The US has cautioned Pakistan about the risk of sanctions in doing business with Tehran, but Iran’s envoy Nourian, said the pipeline does not come under international restrictions.
The two countries are discussing the issue, with Pakistan seeking a US sanctions waiver for the project, he added.
Nourian did not answer a question about the potential for Iran to take legal action against Pakistan if it did not complete its side of the pipeline this year.
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