Hopes for IP gas pipeline as sanctions lift

It is hoped that the removal of economic sanctions on Iran will clear the way for Pakistan to pursue an ambitious gas pipeline for eventually importing up to US$2.5 billion worth of Iranian gas annually, says Pakistan’s Petroleum Minister.

“We need gas. Iran has the world’s second-largest gas reserves,” said Mr Abbasi.

He said the Iranian pipeline will eventually provide a peak of 750 million ft3/d of gas once it is fully operational by 2020.

Developments in Iran

Following a deal last week with world powers to curb its nuclear programme, Iran is preparing for the unwinding of sanctions, which is expected to happen within the next six months.

With a historic deal sealed between Iran and the world powers over its nuclear programme, Pakistan has said the pact will help bring about the multi-billion dollar Iran-Pakistan (IP) gas pipeline and other projects stalled due to sanctions against Tehran.

“Pakistan welcomes the important comprehensive nuclear agreement reached between the Islamic Republic of Iran and the P5 + 1?, said Foreign Office spokesperson Qazi Khalilullah, adding Pakistan has consistently maintained that the Iran nuclear issue should be peacefully resolved through dialogue.

The history of the pipeline deal

Iran and Pakistan signed a gas agreement under former Iranian President Mahmoud Ahamadinejad, for importing 22 million m3/d of natural gas from Iran as of 2015.

“We urge Islamabad to lose no time in moving ahead with Pakistan’s side of the pipeline, as its completion would bring urgently needed relief on the energy deficit at home”, a spokesperson said.

Edited from various sources by Elizabeth Corner

Sources: Financial TimesDispatch Times

Published on 20/07/2015


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