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USA: no change in position on IP pipeline

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World Pipelines,

The US has said that there is no change in its position regarding the Iran-Pakistan (IP) gas pipeline, to which it was earlier opposed to, in the view of the landmark nuclear deal between Iran and the P5+1 countries.

"It's my understanding there's no change in position," State Department Deputy Spokesperson, Marie Harf, told reporters this week at a news conference.

P5+1 interim agreement with Iran

The P5+1 countries (US, UK, Russia, China, and France plus Germany) announced an interim agreement with Iran in Geneva on 24th November 2013, constituting a "Joint Plan of Action”, including "international civil nuclear cooperation ... as well as agreed R&D practices." Realisation of the clause will come through jointly conducted research and development in risk reduction, human performance and safety culture.

As a result of the agreement between Iran and P5+1 countries, the US has relaxed a number of sanctions on Iran, including those that concern countries like India reducing import of oil from Iran to avoid US sanctions.

US firms won’t provide compressors for IP

In other news, it has been reported that two US-based firms have so far declined to provide compressors for the IP project.

The IP project

The Iran-Pakistan pipeline is designed to help Pakistan overcome its growing energy needs. Under a valid contract, Pakistan is required to finish construction of the pipeline on its territory by the end of 2014 and if Pakistan fails to buy gas from Iran by the stipulated date, then it will have to pay a daily penalty.

Energy experts believe that despite the recent relaxation of sanctions on Iran, the IP gas pipeline project will face further difficulties.

Edited from various sources by Elizabeth Corner

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