As anticipation builds for the visit of Iranian President Ebrahim Raisi to Pakistan on April 22, significant progress has been reported on the much-anticipated Iran-Pakistan gas pipeline project. Pakistani authorities have initiated construction on an essential 80-kilometre section of the pipeline, stretching from Gwadar to a point where it can seamlessly connect with the Iranian segment of the project.
Reports indicate that the Inter-State Gas Company (ISGS) has taken crucial steps by issuing tenders to re-validate survey and Front-End Engineering Design (FEED) by consultants, indicating a renewed commitment to advancing the project despite longstanding delays.
The project, which has faced nearly a decade of setbacks, has been further complicated by explicit opposition from the United States and warnings of potential sanctions. Originally scheduled for completion in December 2014, followed by operationalization in January 2015, the pipeline’s progress has been hampered by geopolitical pressures.
Pakistan has cited US sanctions on Iran as a major obstacle to the project’s realization within its territory. However, authorities in Tehran have consistently contested this assertion, arguing that the sanctions lack justification. In January, Tehran issued a final notice to Islamabad, urging the completion of Pakistan’s side of the pipeline by February-March 2024, or face a substantial $18 billion penalty under the Gas Sales Purchase Agreement (GSPA) governing the 781-kilometre project.
A senior official from the Energy Ministry emphasized the urgency of completing the 80-km pipeline segment to avoid potential arbitration in France, which could result in significant penalties for Pakistan.
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