No Ground for US Objection to Iran-Pakistan Gas Pipeline Project: FM Spokesperson

Pakistan has dismissed the United States' objection to its decision to start work on a joint pipeline project between the country and Iran ( IPI Pipeline ).

Late last month, Muhammad Ali, Pakistan’s caretaker energy minister, said work on 80 kilometers (49 miles) of the pipeline that lies in the Pakistani territory would be carried out. Washington has opposed the project, saying it could violate the illegal sanctions that it has imposed on Tehran.

On Thursday, Mumtaz Zahra Baloch, Pakistani foreign ministry spokesperson, was asked during a press briefing if Islamabad had contacted Washington on the decision to begin constructing the pipeline.

"The cabinet of Pakistan decided, a few days ago, to start work on 80 kilometers of Pakistan-Iran pipeline, and this is the beginning of construction of the pipeline and it is in conformity with our commitment to the Iran-Pakistan pipeline,” Baloch said in response. "And since this pipeline is being constructed inside Pakistani territory, we do not believe there is room for any objections by any third party at this stage," she added.

On the other hand, the Iranian ambassador to Islamabad has said that the country’s capable technical and engineering companies are prepared to contribute to the construction of the Iran-Pakistan gas pipeline as well as the renovation of Pakistan Steel Mills.

Reza Amiri-Moghaddam made the remarks in a visit to the port city of Karachi in southern Pakistan, where he met with Chief Minister of Sindh province Syed Murad Ali Shah on Thursday. Underlining the importance of the pipeline for transferring Iran’s gas to Pakistan, Amiri-Moghaddam described the recent decision by the Islamabad government to finalize the country’s share of the gas pipeline as significant, noting that Iranian firms are ready to cooperate in this respect. The ambassador also said that Iran’s railways and roads capacities are available to be used for the development of regional transportation projects such as helping Pakistan reach European and Central Asian markets.

The Pakistani chief minister, for his part, said that the completion of the gas pipeline benefits Pakistan and seems to be a suitable option to assist the country overcome the energy crisis. During his stay in Karachi, the Iranian diplomat also held talks with the governor of Sindh, Muhammad Kamran Khan Tessori. The governor pointed to his recent visits to Iran, saying that banking cooperation and joint gas projects are inevitable efforts to pave the way for expansion of ties.

The IP pipeline will allow Pakistan to start receiving 750 Mscf of gas from Iran daily once the pipeline is completed and commissioned. The project, launched in 2013, required Pakistan to finish the construction of the pipeline on its territory by the end of 2014. But the work stalled, upsetting Tehran, which has said it has already invested US$2 billion in the pipeline on its side of the border. Pakistan is likely to face an US$18-billion fine if it terminates the gas pipeline agreement.

In February 2019, Tehran notified Islamabad of its intention to move forward with arbitration court proceedings for not constructing the pipeline in Pakistan’s territory within the specified time frame under the IP gas line project and invoked the penalty clause of the Gas Sales Purchase Agreement (GSPA). In September 2019, Pakistan’s Inter-State Gas Systems (ISGS) and the National Iranian Gas Company (NIGC) signed a revised agreement for the pipeline’s construction, which stipulates that neither Iran nor Pakistan will take the other to court for delays or impose fines until 2024.

Last month, Islamabad finally gave the green light for advancing much-delayed work on the Iran-Pakistan gas pipeline within its territory. The approval comes as Pakistan has scrambled to avoid a staggering 18-billion-dollar fine, with the government authorizing the commencement of long-awaited work on the initial 80-kilometer phase within its borders. Analysts say the project will improve Pakistan's energy security and support regional industries by providing stable and enhanced gas supplies. Iran has extended the project deadline by 180 days until September 2024 to avoid a legal dispute with Pakistan at international tribunals. - Press TV, Tehran Times