Pakistan offers proposal on Iran-Pakistan Pipeline

July 24, 2014

The Pakistani government has presented a new proposal to Iran’s Petroleum Ministry for the settlement of a dispute about an incomplete gas pipeline running between the two neighbors, a top Iranian official said.

Ali Majedi, deputy petroleum minister for international affairs and trading, said the proposal was recently submitted to Petroleum Minister Bijan Namdar Zanganeh.

“In their proposals, the Pakistanis have offered different solutions for accelerating the construction of [Iran-Pakistan] IP pipeline and have demanded action on the issue. The details of the proposal are being studied,” said Majedi.

He did not reveal details of the Pakistani proposal, but rejected reports of Pakistan demanding two billion dollars in aid from Iran to build its own section of the pipeline.

Pakistan desperately needs to import natural gas from Iran to resolve its loadshedding challenge.

Iran has already built its 900-kilometer share of the pipeline on its own soil and is waiting for the 700-kilometer Pakistani side of the pipeline to be built.

Iran and Pakistan signed an agreement over the construction of a gas pipeline in 1995. Later, Iran made a proposal to extend the pipeline from Pakistan into India. In February 1999, an accord between Iran and India was signed.

But due to the US pressure, India withdrew from the project in 2009.

Source: Pars Oil & Gas Company, 2014