Energy Committee of the Federal Cabinet:
The Energy Committee of the Federal Cabinet has approved the first phase of the Pak-Iran gas pipeline project, which has been pending since 2009, Action on the Pak-Iran gas line.
under which work will be carried out on the 80 km section from the Iranian border to Gwadar, while after the approval of the second phase, it has been extended from Gwadar to Nawab Shah. will be connected to the main line.
Project with far-reaching results Action on Pak-Iran gas line :
This is a project with far-reaching results, its completion will help to get out of the most severe gas crisis that has been going on for more or less two decades at the industrial and domestic level. Action on Pak-Iran gas line
Agreement
The agreement in 2009 happened and the project was supposed to be completed in 2015, but due to the US sanctions imposed on Iran, Pakistan could not implement it. Action on Pak-Iran gas line
A few days ago
A few days ago, it was revealed that the government of Pakistan wants to lay a pipeline on its territory to avoid a fine of 18 billion dollars and financial To tackle the problem, this project will be funded by the Gas Infrastructure Development Cess (GIDC). It is commendable that Iran has offered to provide technical expertise to Pakistan.
Gwadar gas supply from Iran Action on Pak-Iran gas line:
The 781 km section is in Pakistan. There is a bright possibility that the Gwadar gas supply from Iran will start in September this year, however, completion of the remaining section without further delay
will solve the problem and provide the required supply to the domestic and industrial sectors. The expectation of recovery will not be in vain.
Sources said the Decision:
Sources said the decision came after repeated warnings from Iran regarding the stalled project and threats of possible arbitration,
The government of Pakistan acted in response to Iran’s notice of damages for failure to purchase gas.
Iran has set a deadline of September 2024 for Pakistan to complete the pipeline.
Failure to meet
Failure to meet the deadline could result in an $18 billion claim against Pakistan at an international arbitration forum.
Sui gas companies will be responsible for laying the 81 km long pipeline from Gwadar to the Iranian border.
Recent Developments:
Iran issued three notices to Pakistan in 2019, 2022, and most recently in December 2023, demanding that it complete the pipeline or face legal consequences.
The latest notice warns that an $18 billion arbitration claim is likely if Pakistan fails to meet the September 2024 deadline.
current situation:
With this recent assurance, Iran may delay the mediation process depending on the progress made by Pakistan. Sui Gas Companies will be entrusted with the task of constructing the 81 km section within Pakistan’s borders.
Future Implications Action on Pak-Iran gas line :
The project’s success depends on timely completion and overcoming any potential hurdles to avoid arbitration and subsequent financial penalties.
If successful, the pipeline could provide a much-needed energy source for Pakistan and strengthen its economic ties with Iran.