ISLAMABAD: Pakistan is committed to building a multi-billion-dollar gas pipeline from neighbouring Iran, but the threat of international sanctions makes the task difficult, Petroleum Minister Shahid Khaqan Abbasi said on Friday.

“There are contractual obligations between Pakistan and Iran,” the petroleum minister told news agency Reuters.

Dubbed the “peace pipeline”, the $7.5 billion project has faced repeated delays since it was conceived in the 1990s to connect Iran’s giant South Pars gas field to Pakistan and India.

Iran has already spent hundreds of millions of dollars and nearly completed the 900-km (560 mile) pipeline to the Pakistan border.

Pakistan, although suffering from severe gas shortages, has made little progress on its part of the line for lack of funds and warnings it could be in violation of US sanctions on Iran.

“There are constraints with the construction of the pipeline,” the minister added. “There is a threat of sanctions, either US or UN and probably EU also. That limits what options we have with the construction of the pipeline.”

He said: “We are really hopeful that construction should start soon, as soon as these issues are resolved.”

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Comments (4)

hamidik
November 9, 2013 10:42 am

ALL LIES. TOO GOOD TO BE TRUE.

Ahmer
November 9, 2013 7:23 pm

As a brotherly Muslim country, Iran should apprciate our constraints and build the entire pipeline as a goodwill gesture.

Khawar T khyam
November 10, 2013 10:15 pm

If Govt of Pakistan was so much tied up with all sanctions kind of issues then why did they sign up the accord.

Khawar T khyam
November 10, 2013 10:17 pm

@Ahmer: Then You will demand that they should give you the free gas also.

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