2024-05-07 17:11:19
Islamabad: Ignoring US pressure, Pakistan and Iran can move ahead on the ambitious gas pipeline. Iran’s Consul General in Pakistan Hassan Nouriyan has said that officials of Iran and Pakistan are considering ways to complete the long-stalled gas pipeline project between the two countries. On a question related to the pipeline, he said in Karachi that we are seeing political determination in Pakistan to complete the project and it will soon be taken forward for completion by removing all the hurdles. Nourian said on Monday that the pipeline does not fall under international sanctions and the two countries are discussing the issue. However, he did not answer the question whether Iran would take legal action against Pakistan if it did not start work on the pipeline.
Tehran and Islamabad signed a deal in 2010 to build a gas pipeline from Iran’s South Fars gas field to Pakistan’s Balochistan and Sindh provinces. Despite more than a decade since the deal was signed, work on the pipeline in Pakistan’s part is stalled. The main reason for this is Pakistan not moving forward on this due to the fear of American sanctions. Iran says it has invested two billion dollars to build the pipeline in its territory but Pakistan has not started the construction citing international sanctions on Iran as the reason. The 1900 km long pipeline aims to supply 750 million to one billion cubic feet of natural gas every day for 25 years to meet Pakistan’s growing energy needs.
Shia Iran or Sunni Saudi Arabia…Pakistan is struggling with the challenge of managing two Muslim countries, the government is stuck.
Pakistan may be fined
Pakistan had sought a 10-year extension to build the pipeline in 2014, which expires in September this year. Pakistan has no option but to start construction. If this is not done, Iran can take Pakistan to the International Court and Pakistan may have to face a heavy fine. In view of this, the caretaker government of Pakistan had earlier this year talked about starting the plan for the construction of 80 km section of the pipeline. In March this year, Pakistan had said that it would seek exemption from US sanctions for the pipeline but the US made it clear that it does not support the project.
Pakistan needs natural gas for domestic and industrial energy needs. Pakistan is in dire need of cheap gas as its own reserves are depleting rapidly and LNG deals are making supply expensive amid high inflation. Iran has the world’s second-largest gas reserves after Russia, but Western sanctions and political turmoil have slowed its growth as an exporter, according to BP’s Statistical Review of World Energy.