Petroleum and Natural Resources Division is likely to resume discussions with Iran on Iran Pakistan (IP) Gas Pipeline soon after the new government assumes power. On Saturday, Iranian Ambassador, Hunardost called on Pakistan Tahreek-e-Insaaf (PTI) chairman and Prime Minister in waiting Imran Khan and discussed with him bilateral issues including IP gas pipeline.
Iranian Ambassador stated that the gas pipeline project can change the future of Pakistan and Iran was ready for meaningful dialogue with Pakistan on IP gas pipeline.
Sources in the Petroleum Ministry revealed to Business Recorderthat Pakistan received a letter from the Iranian government wherein it urged progress on long stalled gas pipeline. All outstanding issues are likely to come under discussion including amendments in the Gas Sale Purchase Agreement (GSPA) to take account of the revisions required in the implementation framework due to the delay in implementation, sources added. The project was stalled due to sanctions against Iran by the United States, they added.
Iran may take the matter to international arbitration where Pakistan is already facing cases of reneging on other international agreements including Reko Diq and Karkey. There is concern in the Petroleum Division that Iran may invoke penalty clause of the GSPA signed between the two countries in 2009 during the tenure of the Zardari-led government.
Taking to Business Recorder, Deputy Chairman of the Senate Saleem Mandviwalla told Business Recorderthat he held a meeting with Ambassador of Iran Mehdi Hunardost at Parliament House last month and Ambassador had expressed his government's readiness to resume the gas pipeline project.
He suggested that new government should pursue the project as it was in the interest of the country as supply of gas through the pipeline would be 30 percent cheaper than LNG import.
He recalled that President Asif Ali Zardari along with Iranian President Mahmoud Ahmedinejad had inaugurated the multi-billion dollar IP gas pipeline in Chahbahar on 10 March, 2013 despite US sanction on Iran. The Trump administration has re-imposed sanctions on Iran and even America's European allies are facing the possibility of being sanctioned in the event that they engage in trade with Iran.
Iran has completed 900 km (560 miles) of pipeline on its side of the border. Tehran has also agreed to lend Islamabad $500 million, or a third of the estimated $1.5 billion cost of the 750 km Pakistani section of the pipeline.
Pakistan was required to lay the Iran-Pakistan gas pipeline by December 2014, but international sanctions on Tehran were cited as the reason for the delay.
Comments
Comments are closed.