Iran is currently waiting for Pakistan to put forward its proposal for the completion of the multi-billion-dollar pipeline projected to carry natural gas from Iran to its Eastern neighbour, a senior energy official said.
“Pakistani Federal Minister of Petroleum and Natural Resources Shahid Khaqan Abbasi is expected to send a letter to his Iranian counterpart Bijan Namdar Zanganeh in this regard,” Iranian Deputy Oil Minister for Trade and International Affairs Ali Majedi told reporters on Friday.
He reiterated that Tehran and Islamabad were resolutely engaged in political efforts for the implementation of the pipeline project. Under an agreement between Tehran and Islamabad, Pakistan was to receive 750 million cubic feet of gas per day (mcfd) from January 1, 2015. Later, the gas supply from Iran was to be increased to 1 billion cubic feet gas per day (bcfd).
Now the import of gas under the IP project seems a non-starter. If Pakistan fails to meet its obligation, then after the deadline, it will have to pay to Iran the huge penalty of almost $200 million a month.
Iran has already built 900 kilometers of the pipeline on its own soil and is waiting for the 781-kilometer Pakistani side of the pipeline to be constructed. The IP pipeline is designed to help Pakistan overcome its growing energy needs at a time when the country of over 180 million people is grappling with serious energy shortages but certain countries, specially the US, pressure Islamabad to abandon the project.
