Islamabad Mulls Constructing IP Gas Pipeline Project despite US Sanctions: Report
TEHRAN (Tasnim) – Pakistan is mulling over completing a much-delayed pipeline project with Iran, which has been stalled for years and has failed to move forward, in spite of the US sanctions.
Islamabad is considering the finalization of the first phase of the 80-kilometer pipeline, according to Pakistani news website The Nation.
"Pakistan will submit an application toseek a waiver of US sanctions for the Iran-Pakistan (IP) gas pipeline project. Initially, it has been decided that in the first phase of the IP project, work on the 80 km portion from the Pak–Iran border to Gwadar will be started," a source in the Pakistani energy ministry told the outlet, oilprice.com reported.
The project, which aims to connect the Pakistani port city of Gwadar to the Iranian border, was launched in 2013. It required Pakistan to complete the construction operation of its end of the pipeline by 2014.
Iran said it has already completed its side of the pipeline and has invested $2 billion in the project.
Islamabad suspended its participation in the project a few months later, in August, due to the threat of US economic sanctions.
Pakistani officials warned in May 2023 that If Pakistan failed to complete the construction operation of the pipeline gas projects, it would be fined $18 billion.
Once the construction operation of this project is completed, Pakistan can import 750 million cubic meters of gas/day, the report added.
