Implementation On IP Gas Pipeline Project To Be Reviewed In 2018-19

ISLAMABAD (APP):Petroleum and Natural Resources Division has planned to review implementation on Iran-Pakistan gas pipeline project with its Iranian counterpart aims at finalizing all outstanding issues, especially in the wake of international sanction on the commodity supplier.


“In the next fiscal year, the Division will review the implementation on IP project will be reviewed in consultation with the Iranian counterpart to discuss and finalize all outstanding issues including amendments in the Gas Sale Purchase Agreement (GSPA) for preparing revised implementation

framework for completion of the project,” official sources told APP.

They said the petroleum division was planning to negotiate amendment in the GSPA with Iran to execute the much-delayed gas pipeline project.

“Pakistan is committed to execution of the project. Due to international sanctions on Iran, Pakistan issued Force Majeure notice to Iran in March 2014 and proposed amendment in the GSPA enabling the parties to complete their respective sections of the pipelines within the extended period,” the sources added.

Elaborating the sanctions, they said, there were multilateral and unilateral sanctions imposed on Iran. “The multilateral sanctions are by United Nations, while the unilateral sanctions are by United States, United Kingdom, Canada and European Union,” the sources said.

The unilateral sanctions imposed by US are the most severe amongst all international sanctions, they said adding the key US sanctions on Iran were imposed through Iran Sanctions Act, 1996, Comprehensive Iran Sanctions, Accountability and Divestment Act, 2010 and National Defence Authorization Act, 2012.

Answering a question, the sources said the Iran-Pakistan gas pipeline project had come under discussion during the visit of Iranian President to Pakistan in March 2016 and both the sides had agreed to resolve all outstanding issues.

The 56-inch pipeline, they said, would start from the onshore gas processing facility at Assaluyeh in Iran to transverse a distance of 1150 kilometer up to the Iran-Pakistan border, which would be built and operated by Iran.

While, the Pakistan section of pipeline, around 781 kilometer, is to be laid near to the Makran coastal highway from Iran-Pakistan border up to Pakistan off-take point at Nawabshah. “The gas volume is 750 million cubic feet per day (mmcfd),” they said.

Sharing some details of the project, the sources said Inter-Governmental Framework Declaration was signed between the two countries on May 24, 2009, while GSPA had been agreed on June 2009.

Subsequently, Pakistan issued sovereign guarantee on May 28, 2010. The project consultant was appointed on April 11, 2011, while the design, feasibility, route survey and other formalities of the project were completed on September 8, 2012.


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