IP gas pipeline project: Pakistan to lay 81-km pipeline from Gwadar to Iranian border

ISLAMABAD: Pakistan has decided to complete the much-delayed gas line project in its territory under two phases and has carved out a plan to first lay the 81-kilometer part of the pipeline from Gwadar, a point where Iran has already laid its part of the pipeline from the gas field.

The Special Investment Facilitation Council (SIFC) has also approved the plan to first lay down the 81 kilometers as part of the total pipeline of 781 kilometers that will, in later stages, connected to Nawabshah. The Petroleum Division, to this effect, will soon seek administrative approval from the federal cabinet for laying down the 81- kilometer pipeline and the finance ministry will also arrange the required funding from the board of Gas Infrastructure Development Cess (GIDC).

As per the plan, the officials said, the 81-kilometer pipeline will connect Gwadar with the IP gas line project and gas will be used in Gwadar initially.

Iran has already extended the 180-day deadline till September 2024 to Pakistan. If Islamabad authorities fail to positively respond, Tehran will move Paris-based International Arbitration seeking a penalty of $18 billion. “However, Iran also offered its legal and technical expertise to Pakistan to jointly work out a win-win strategy before the end of 180 days deadline so that arbitration could be averted.” The Iranian technical and legal experts’ team was earlier scheduled to arrive in Pakistan on January 21-24 for talks to find a solution but it could not arrive because of tensions between the two countries. Now normalcy has been attained. Under the SIFC directive, the Petroleum Division has been asked to take the Ministry of Foreign Affairs (MoFA) on board to follow up on the proposed visit of the Iranian delegation to Pakistan. The coordination committees from both sides would find out a doable strategy to materialise the project.