Iran and Pakistan finalise ‘peace pipeline’ without India

Iran has formally signed a US$ 7.6 billion cross-border pipeline deal with Pakistan, that will see it supply 750 million ft³/d of natural gas to Pakistan from 2014.

The so-called ‘peace pipeline’ was originally conceived in the 1990s as a three country deal and preliminary pacts were signed: but a year ago Iran and Pakistan decided to pursue the pipeline project without India.

India’s concerns about the price of gas, the safety of the pipeline in Pakistani territory and the high transit fee meant that negotiations were in a constant state of delay. Speculation that New Delhi was being influenced by a disapproving Washington was driven by the USA’s outspoken condemnation of Iran.

Iran and Pakistan decided to enter into a bilateral agreement in 2009.

The pipeline will transport South Pars natural gas to Pakistan from 2014. Iran is expected to begin construction of the 300 km stretch of the pipeline from Iranshahr to the Pakistani border next week. It has already built 907 km of the pipeline from the Asalooyeh Energy Zone to Iranshahr.

Read the article online at: https://www.worldpipelines.com/business-news/17062010/iran_and_pakistan_finalise_%E2%80%98peace_pipeline%E2%80%99_without_india/