US says will invoke sanctions if Pakistan pursues Iran gas pipeline deal

KARACHI: In the latest twist in US-Pakistan relations the United States has opposed the multi-billion-dollar Iran-Pakistan gas pipeline, sounding the alarm that the US may impose sanctions if Islamabad pursues the venture.

According to sources, the issue was raised during the fourth round of Pakistan-US strategic dialogue on energy in Islamabad on Thursday.

It may be mentioned that Pakistan has apprehensions about the TAPI project due to security concerns relating to Afghanistan and higher gas prices in that region.

Being the largest gas field in the world, gas produced from the South Pars field would be cheaper for Iran than that extracted from smaller fields in Central Asia, including the Caspian Sea fields to which Turkmenistan has access.

The opposition has come from the US just days after high level talks between Pakistan and Iran, where it was agreed to go ahead with the project. It is proposed that the pipeline would bring its first gas flow by 2014.

It is also being said that the US may stop technical assistance to Pakistan.

However, according to a government official, Pakistan and Iran have already signed an agreement.

Copyright Business Recorder, 2011