Pak-Iran gas pipeline project gets go-ahead by caretaker cabinet

• Pipeline project has been facing delays in completion since 2014.
• On Feb 23, federal cabinet approved summary through circulation.
• 1931-kilometers-long gas pipeline project will complete in one year.

ISLAMABAD: The caretaker federal cabinet committee has approved the Pak-Iran gas pipeline project with plans to complete it in a year, marking it a major development with hopes for boosting the country's energy security, The News reported on Tuesday.

The federal cabinet, on February 23, approved a summary through circulation to ratify an earlier decision taken by the Cabinet Committee on Energy greenlighting the project that has seen more than a decade’s delay.

The 1931-kilometers-long gas pipeline project is likely to be completed in one year and will cost $158 million. Out of total length, 1150 kilometres of the pipeline will be laid inside Iran and the remaining in Pakistan up to Gwadar.

It may be pointed out here that Iran had already completed the laying of a 900-kilometre pipeline. The project agreement was signed in 2009 and was to be completed in 2015.

In its statement last week, the Energy Ministry said the cabinet committee had taken up a summary of the Petroleum Division regarding the IP Gas Pipeline in its session.

The CCoE, the statement mentioned, approved the recommendations of the Ministerial Oversight Committee for the project constituted by caretaker Prime Minister Anwaar-ul-Haq Kakar in September 2023, whereby the committee recommended starting work on the 80km segment of the pipeline inside Pakistan — from Pakistan border up till Gwadar in the first phase.

The project is said to be executed by Inter State Gas Systems (Pvt) Ltd and funded through Gas Infrastructure Development Cess, the statement mentioned.

All the concerned divisions, the ministry said, gave a positive nod to move ahead with the project to ensure gas supplies to the people of Pakistan, thereby addressing the increasing energy needs of the country.

The ministry added that the project would not only boost the energy security of Pakistan but would enhance the confidence of the local industry which would be ensured with the enhanced gas supplies.

“This will also catalyse the economic activity in the province of Balochistan and will contribute to the economic progress of Pakistan,” the ministry added.

The project has been facing delays since 2014. In January, Iran issued a third notice to Islamabad, renewing its intention to move the arbitration court for not laying the pipeline as part of the IP gas line project.

The News reported that Pakistan has been arguing that it could not materialise the project in its territory because of the US sanctions imposed on Iran, a view which authorities in Tehran have never subscribed, saying the US sanctions are not justified. Iraq and Turkey have been using gas from Iran for long as they have managed waivers on the US sanctions.

However, as Pakistan is also showing intentions to move forward, Iran has already extended the 180-day deadline till September 2024 to Pakistan.