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Iran-Pak pipeline: US warns of potential ramifications but wants to help Pakistan address energy shortage

  • State Department spokesperson says the US continues to stand shoulder to shoulder with Pakistan in its fight against terrorism
Published September 4, 2024

The United States has warned Pakistan of the potential ramifications of considering business deals with Iran.

US State Department spokesperson Matthew Miller in response to a query about the Iran-Pak gas pipeline project said, “So what I’ll say is that we will continue to enforce our sanctions against Iran. And as a matter of course, we also advise anyone considering business deals with Iran to be aware of the potential ramifications of those deals.”

Spotlight: Iran-Pakistan gas pipeline and some key facts

Faced with a potential fine of up to $18 billion for not holding up its half of the agreement with Iran, Pakistan’s Ministry of Energy started work on the project this April.

The authorities concerned started working to materialise 80-km pipeline from Gwadar to a point where it will get connected with the pipeline in Iranian territory.

The Iran-Pak Gas Pipeline Project was estimated to be completed in 24 months at Rs44 billion and it would transport natural gas from Iran to Pakistan.

Despite Pakistan’s assertion that the project could not move ahead due to US sanctions on Iran, Tehran has consistently maintained that these sanctions are unjustified. Tehran issued a final notice to Pakistan in January this year for completion of its pipeline portion by February-March 2024, or face an $18 billion penalty under the Gas Sales Purchase Agreement (GSPA) penalty clause for the 781-kilometer project.

The official emphasised the urgency of laying the 80-kilometer pipeline section to avoid arbitration in France, which could result in Pakistan being liable for the aforementioned penalty.

While Washington has repeatedly warned against the pipeline, the State Dept official said helping Pakistan address its energy shortage was a priority for the United States, and “we continue to discuss energy security with the Government of Pakistan”.

US stands shoulder to shoulder with Pakistan

Moreover, Miller strongly condemned the recent terrorist attacks in Balochistan, which resulted in the deaths of over 50 people.

“The Pakistani people have suffered greatly at the hands of violent extremist terrorists and our hearts go out to the families and loved ones of those killed,” he said.

“The United States and Pakistan have a shared interest in combating threats to regional security, and we will continue to stand shoulder to shoulder with Pakistan in its fight against terrorism.”

His statement comes after at least 73 people were killed in Balochistan when terrorists attacked police stations, railway lines, and highways, and security forces launched retaliatory operations.

As per the digital database of security incidents managed by the Pak Institute for Peace Studies (PIPS) – an Islamabad-based think tank, Balochistan experienced 28 terrorist incidents during August 2024, which resulted in 57 deaths and injuries to another 84 people.

Following the uptick of terrorist attacks, President Asif Ali Zardari stressed upon taking of all possible steps to improve security situation in Balochistan and called for effective measures for the complete elimination of terrorists.

Comments

200 characters
KU Sep 04, 2024 10:56am
A friend but certainly not indeed. US threat against use of Iranian gas or warning no-cooperation with Chinese, while we suffer economic woes. But Indian oil import from Russia is ignored shamelessly.
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Your Name Sep 04, 2024 10:56am
This is a very informative article about the Pak-Iran pipeline. Thank you for sharing this update!
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Abdullah Sep 04, 2024 11:28am
Pakistan government follow US government because our government is slave. Shame Shame
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Love Your Country Sep 04, 2024 11:47am
Normal double-face behaviour.
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Aamir Sep 04, 2024 02:43pm
Useless govt and useless nation. We are slaves of USA
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Ahmad Abbasi Sep 04, 2024 03:29pm
No one can warns a sovereign county to do or not to do. Pakistan is severe energy deficient county and it needs ample energy to better it's economy and to reduce it's poverty. So it takes every step to get rid from economy crises.
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test Sep 04, 2024 04:19pm
First japan came & looted Pakistan by selling too much cars without making in Pakistan. Barrick Gold came to Pakistan and took half of the reko diq gold. Now iran has ordered 18 billion usd penalities
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TimetoMoVVeOn Sep 04, 2024 04:49pm
@KU, may be it is payback for hiding obl.
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Faiz Jalib Sep 04, 2024 05:17pm
Bhai jab sanction tha tou piple ki deal kiyun sign kari? Must be to get all the free publicity for initiating a mega projects - while the roads in the provincial capitals lie unrepaired for decades.
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AHMED ABDULLAH Sep 04, 2024 05:35pm
Why only Pakistan/ Why US Can not enforce its sanctions on China for Petrol being purchased from Iran. Why No sanction on India. Only Poor Pakistan which has crippled due to energy crises.
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Azeem Sep 04, 2024 06:40pm
These sanctions are only maint for Pak. What about India and china. Double standards of USA which is not a friend at all,but its behaviour is of a foe.
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Adnan Zafar Sep 04, 2024 07:52pm
Political division has made us financially weak. Currently, we cannot run state affairs without loan from IMF. IMF is the watchdog of US. China, India do not depend on IMF loans. Stupid politicians.
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Naveed up Haque Sep 04, 2024 08:03pm
Why do you think Pakistan is not in IMF agenda.
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Naveed up Haque Sep 04, 2024 08:07pm
Our rulers should shed the delusion of geo strategic location and face reality. Till you hear someone in Pakistan lamenting about geo-strategic location, Pakistan will never progress.
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Naveed up Haque Sep 04, 2024 08:11pm
@TimetoMoVVeOn, even our government imported cheap russian oil. There's some trouble with our refineries. We are even partnering with Russians for Sui gas pipeline.
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Naveed up Haque Sep 04, 2024 08:12pm
@TimetoMoVVeOn, we are also getting Iranian oil through smuggling.
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Naveed up Haque Sep 04, 2024 08:13pm
@TimetoMoVVeOn, we actually don't fear Americans, but petrified about Chinese cold behaviour towards us.
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Amran Arshad Sep 04, 2024 08:20pm
Go to hell...who d hell USA to dictate us We r a sovereign country even though our leaders r FOOLS ...but anyway iran is our neighbour and we can bartertrade every resourse we both agreed....this logic cant b denied by any authority in d world
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Amran Arshad Sep 04, 2024 11:42pm
This is a pure masterpiece example of shame democracy and a boot on d face of our leadership C&M ,as they should have denounced such threats and USA embasider should b handed a demarchi..imm
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Chawla.i Sep 04, 2024 11:48pm
China and india r buying every yeary 25bil. Dollars gas and oil ...by ship , i invite USA to enforce sanctions to them....send back USA embasider to thier country imm and recall our embasider from DC
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Ben Dover Khan Sep 05, 2024 08:16pm
US is our largest trading partner. For Pakistan to replace US as largest trading partner with another country is impossible. For US, Pakistan can be replaced just like that.
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Ben Dover Khan Sep 05, 2024 08:28pm
Largest trading partner, IMF loans, and military alliance are some of the factors which allows US to dictate terms to Pakistan. Most countries are sensible dealing with US or China. Pakistan isn't.
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Pasha S Sep 06, 2024 01:11pm
Talking about sovereignty when we keep getting bailed out by foreign countries and IMF.
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Pasha S Sep 06, 2024 01:17pm
I worked at IMF and I have witnessed first hand the respect our country gets and the level of sovereignty our country is. This is actually surprisingly to see Americans being so polite.
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