Iran, Pakistan Exploring Ways to Complete Long-Delayed Gas Pipeline Project

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Iran, Pakistan Exploring Ways to Complete Long-Delayed Gas Pipeline Project

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Iran & Pakistan on the map (© Shutterstock/Claudio Divizia)
Iran & Pakistan on the map (© Shutterstock/Claudio Divizia)

Iran and Pakistan are exploring ways to complete a gas pipeline project stalled for over a decade due to sanctions concerns according to Iran's Consul General to Pakistan, Hassan Nourian.

Nourian told reporters in Karachi on Monday that Iran sees "political determination from Pakistan to complete the project."

The agreement to build the 1,900-kilometer (1,180-mile) pipeline was signed in 2010 to transport natural gas from Iran's South Fars field to Pakistan's Balochistan and Sindh provinces. However, construction on the Pakistani section has not begun due to fears of U.S. sanctions on Iran.

Pakistan reportedly requested a 10-year extension to complete the project in 2014, with the deadline expiring in September 2024. 

Following Tehran’s previous threat of taking legal action if the project is not finished, Pakistan's caretaker government approved plans to build an initial 80-kilometer (50-mile) segment of the pipeline this year. 

Additionally, Islamabad requested a U.S. sanctions waiver for the project in March, but the U.S. expressed opposition and warned of potential sanctions risks.

Nourian downplayed concerns about international restrictions, stating that Iran and Pakistan are currently in discussions. However, he did not comment on the possibility of legal action from Iran if Pakistan fails to meet the deadline.

Pakistan faces a growing energy crisis with dwindling domestic gas reserves and expensive Liquefied Natural Gas (LNG) imports due to high inflation. The country hopes the Iranian gas pipeline will provide a cheaper and more reliable energy source.

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