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A lot of issues that have built up over the years will be resolved, especially the Iran-Pakistan pipeline, said Shahid Khaqan Abbasi. —Reuters/File
A lot of issues that have built up over the years will be resolved, especially the Iran-Pakistan pipeline, said Shahid Khaqan Abbasi. —Reuters/File

ISLAMABAD: Islamabad is hopeful of reviving a stalled gas pipeline project connecting Iran to energy-starved Pakistan, Minister of Petroleum and Natural Resources Shahid Khaqan Abbasi said on Wednesday following the signing of a historic nuclear deal between Tehran and world powers.

Launched in 2010, the project envisages the creation of 1,800 kilometre pipeline from Iran to Pakistan, which has for years been blighted by an energy crisis that has stunted its economic growth.

“A lot of issues that have built up over the years will be resolved, especially the Iran-Pakistan pipeline, where we have a contractual obligation to buy the gas and they have the obligation to deliver the gas but that has been hit by the sanctions,” Shahid Khaqan Abbasi told AFP.

Iran completed its part of the project in 2013, but Pakistan put construction on hold citing US and European sanctions on Tehran linked to its nuclear programme.

The International Atomic Energy Agency is set to verify Iran has implemented its commitments in December, paving the way for sanctions to be lifted from the start of next year.

“Now hopefully, as the sanctions are removed, it will facilitate us in addressing our energy needs and also meet the contractual obligation,” Abbasi added.

Pakistan's key ally China is currently financing the construction of a gas pipeline from the southern town of Nawabshah to the deep-water port of Gwadar, not far from Iran.

Once that is built, Pakistan will “only have to build another 80 kilometres” of pipeline to link up to Iran, and could eventually extend the project as far as its northern border with China, said Abbasi.

He further said that projects worth Rs 1,000 billion are underway for completion of Iran-Pakistan gas pipeline and LNG smart gas projects. He said a decision has been taken to postpone the recovery of cess for three months after which further action would be decided by the concerned committee of the parliament.

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Comments (27) Closed

M.Saeed Jul 15, 2015 07:01pm

Iran does not remain a reliable partner in IP gas pipeline project. Better build TAP pipeline.

Blue Saffron Jul 15, 2015 07:08pm

Let the building start! I want to see construction all over Pakistan. Development. Progress. Let us do it.

Khwaja Jul 15, 2015 07:44pm

For year lied to the public on the Gas Pipeline. Be brave and accept the truth that it was the direct US threat to the project.

Muzaffar Ali Jul 15, 2015 07:51pm

In life and politics, we need non linear thinking!

Learn to play chess,(non linear) not checkers(linear).

WE could have been ahead of the curve, but Pakistan just kept back tracking each time with Iran....

Now Pakistan wants to be counted in!

khanm Jul 15, 2015 07:55pm

Just for the was Pakistan that chucked the agreement and not Iran. We can not even move a cotton stick unless approved by our mentors... living in peace and spread prosperity was not in the agenda before the deal was signed... it is the international politics that matters and not the internal one..

Zain Jul 15, 2015 07:56pm

I hope the pipeline happens but not at the cost of our relationships with the Arabs.

We get $20 billion from gcc countries in remittances while the pipeline will save 1_2 billion in oil imports.

Khan Jul 15, 2015 08:01pm

He should also answer about the Qatar LNG contract?? For what price they did the deal with Qatar??

From USA, S.A.Hyder, Ph.D. Jul 15, 2015 08:30pm

Who will guard the pipeline from the SA backed terrorists? More so, that Saudi Arabia is staunchly against the Iran-nuclear deal. May be, Saudi Arabia should get together with Israel and try too derail the pipeline deal. That would more likely work. Because SA is not as much friends with Pakistan as enemy of Iran. As much an enemy as Israel is. With Saudi money and Israeli technology all is possible.

Muzaffar Ali Jul 15, 2015 08:38pm

It is not: Iran or Arabs.....

It is Iran and Arabs...both are and should be our friends and brothers.

Kala Ingrez - کالا انگریز - काला अंग्रेज - কালো ইংরাজি Jul 15, 2015 09:25pm

Contrary to how Iran has been portrayed to us because of political-religious reasons, Iran has being a sworn enemy of Pakistan and Iran prefers India to Pakistan. Pakistan is only good for IRAN to recruit terrorists to fight her war in middle east and create chaos in Pakistan. The Palestinians and the supporters of the Hizballah are now finding out that the crazy Ayatollah's Iran was using them to put pressure on the West while had hidden relationship with Israel. The Pakistani should be careful of any friendly gesture from Iran full of hidden agendas to create more chaos in Pakistan and suppress the freedom of the Balouch people in Iran.

cautious Jul 15, 2015 09:42pm

Iranians don't produce enough natural gas to even supply their own domestic needs during the winter. Most people who enter into long term contract perform "due diligence" which would have discovered this obvious fact ... or you might have picked up the phone and asked Turkey.

Aftab Siddiqui Jul 15, 2015 09:59pm

We should move forward with the Iran pipeline as it is the logical thing. Yes we should look at other pipeline like TAPI also since our energy needs will increase in the future and TAPI will supply to India also. Diversification of our energy sources will be good policy. No matter what grievances Iran and Pakistan have with each other, both are neighbors without any border dispute or major issue. It will be in the interest of Pakistan to keep good relations with Iran considering that our border with India is not secure and intermittently gets hot; and who knows about Afghanistan's policies. Pakistan should always cultivate and keep good relations with Iran no matter what other countries say. It is in our strategic interest.

javed Jul 15, 2015 10:20pm

@Kala Ingrez - کالا انگریز - काला अंग्रेज - কালো ইংরাজি very true but we should continue with the project

Euro Jul 15, 2015 10:38pm

Let's think about export as well. India is looking forward to 6 billion dollars of trade, includin agriculture products like rice. Let us also try to export of agriculture products like the Basmati rice.

a ali Jul 15, 2015 10:40pm

am really impressed with guts of Khaqan Abbasi who still managed the courage and guts to come back on media and say that Pak Iran gas pipeline will go ahead.... shameless people have not even made an inch of pipeline on our side whereas Iran had done their part near Pakistan's borderline as per agreement. shame on us for choosing such liars as our parliamentarians who feel proud while lieing blatantly and grossly in common.

Syed Ganga Din Jul 15, 2015 11:13pm

"Tehran nuclear deal revives hope for Pakistan-Iran gas pipeline"

It was Saudi influence that stopped the project and had nothing to do with sanctions or nuclear deal. The minister is lying and has no idea what's in that deal.

M. Asghar Jul 16, 2015 12:26am

The completion of the IP gas pipeline is a an existential problem for Pakistan. Here Iran is a trustworthy partner, while SA is an unreliable tribal conglomerate.

A Shah Jul 16, 2015 01:48am

Unfortunately while Pakistan was turning its back on Iran, India was getting in there.

UMallick Jul 16, 2015 02:26am

No one can stop progress and development in the region. No matter how much US and Western gangsters wish rabbit is out of the hole!!! Pakistan /Iran/ China and regional countries will lead the region into a new stage of prosperity.

Mehtab Jul 16, 2015 03:15am

@M.Saeed We haven't fulfilled our commitment not Iran

Mehtab Jul 16, 2015 03:20am

It is in our interest to buy Iranian gas for our deteriorating economic development. Put Arab GCC politics aside and act on our own interests. We don't need charity money whether it comes from Arabs or West.

Farouk Jul 16, 2015 03:41am

Pipe line should have been completed 10years ego now was the time to connect with Iranian pipe line, corrupt leader ship of Pakistan Musharaf didn't do it ,Zardari's government didn't do it,Now PMLN hasn't done it, I don't know who is going to do it, Nawaz may has to ask USA can I start pipe line please Sir?

Cyrus Jul 16, 2015 04:58am

Barack Obama knew that before you did. What did you think he was working on? Stability and Growth in South Asia. Your elected politicians were never president _____ of the Harvard Law Review.

Zehri Jul 16, 2015 05:11am

At what rate we will buy the gas is a question mark

asm123 Jul 16, 2015 05:11am

The agreement has to be ratified by US congress before sanctions are lifted on Iran. This process can take anywhere from 5 months to a year. Lets not celebrate too early.

zain Jul 16, 2015 06:50am

Revival mean to face Saudis pressure & end of commission set with Qatar LNG contract.

responsible Jul 16, 2015 10:30am

Even we can not handle oil crises. How can we handle such a big deal. What about the LNG contract.