Pakistani Minister of Petroleum and Natural Resources stresses the importance of the Iran-Pakistan pipeline

Earlier this week Pakistani Minister of Petroleum and Natural Resources, Shahid Khaqan Abbasi, stressed the importance of the IP pipeline project that will carry natural gas from Iran.

Abassi stated that Pakistan will complete the project, regardless of any domestic or foreign pressure. He also asserted the government’s commitment to finishing the pipeline within the stipulated timeframe – a failure to complete the pipeline by January 2015 would result in penalty of US$3 million a day.

The IP pipeline is set to cost US$1.5 billion. The part of pipeline that runs through Pakistan is to be paid by the country’s government, who are currently attempting to arrange funding.

In regards to financial arrangements, Abbasi said “The previous government has imposed a Gas Development Cess to raise money. But Islamabad High Court struck it down. We are trying to solve that problem. But we are also trying to work on some interim arrangement”. He further added that the “problem would be resolved soon”.

The Iran-Pakistan pipeline

The pipeline is vital in relieving energy shortages in Pakistan, especially as domestic gas production has remained stagnant and import projects have hit a stalemate. When completed, the IP pipeline will enable the exportation of 21.3 million m3/d of Iranian natural gas to Pakistan.

“There is no fear of any sanctions. We are confident that the project will go through and we are pushing for it,” Abbasi told newsmen.

Edited from various sources by Hannah Priestley-Eaton

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