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Work on Iran-Pakistan pipeline to begin in September

Monday, July 20
Work on the Iran-Pakistan gas pipeline project is expected to begin in September, Pakistani Federal Petroleum Minister Shahid Khaqan Abbasi said.

Abbasi said the project is planned for completion over the course of 30 months, Iranís Fars news agency reported on July 17.

Pakistan can receive Iranian gas in 2017 after establishing the pipeline, he noted.

He went on to say that the nuclear agreement between Iran and world powers will be beneficial for Pakistan, and will lead to the expansion of bilateral energy and economic ties.

He added that under the agreement Pakistan had to lay down pipeline 700 KM, which may take over two years.

Iran and Pakistan signed a gas agreement under former Iranian President Mahmoud Ahamadinejad, which according to, Pakistan was set to import 22 million cubic meters per day (mcm/d) of natural gas from Iran as of 2015. But because of finance problems, Pakistan has not yet managed to establish its section of the pipeline.

Based on the agreement, Pakistan was also supposed to pay $200 million to Iran each month as penalty for delays in implementing the project.

The Pakistan section of the Peace Pipeline is set to be 700 kilometers extending from Gwadar Port to Nawabshah. The pipeline will enable Pakistan to generate 4,500 megawatts of thermal power. The section of the pipeline extending from Iranís border to Gwadar is 50 kilometers. Pakistan is supposed to establish this section.