Pakistan to finalize Gwadar-Iran gas pipeline project

 Pakistani authorities have decided to finalize an 81-kilometer-long gas pipeline from the country’s Gwadar port city to the Iranian border as part of the Iran-Pakistan gas pipeline project.

According to the Nation news website, Pakistan decided to kick off the work on completing the project, which faced significant delays, in two phases.

Authorities in Islamabad will follow up a plan to complete the 81-kilometer portion from the Pakistan-Iran border to Gwadar, a source said.

Pakistan’s Special Investment Facilitation Council (SIFC) also ratified a plan to implement the 81-kilometer section as part of the total 781-kilometer pipeline, which will be linked to Nawabshah City in future stages.

The oil sector of Pakistan is expected to receive approval from the federal cabinet to implement the project, for which the Ministry of Finance would demand a budget from the Gas Infrastructure Development Cess (GIDC).

Iran had previously given Pakistan a 180-day deadline until September 2024 to start completion of the pipe-laying work. Tehran warned Islamabad if its authorities do not accept the suggestion, Iran will move to the Paris-based International Arbitration for non-execution of the project and the Islamic Republic will seek an $18 billion penalty by lodging a complaint at the Paris-based institute.

However, Iran also proposed that it can provide Pakistan with its legal and technical expertise in order to jointly develop a win-win strategy before the end of the deadline.