Iran Blames Pakistan for Delay in Gas Pipeline Project

SEATTLE (Oil Monster): The Iranian Minister of Petroleum Bijan Zangeneh has put blame on Pakistan for further delaying the construction works of Iran-Pakistan gas pipeline. According to the Minister, Iran has already completed construction of 900 kilometers of the pipeline up to the border of Pakistan and is ready to deliver gas. However, Pakistan is yet to start works on the proposed 700 kilometers of pipeline in its territory. Incidentally, the project is designed to carry in excess of 20 mcm of gas per day from Iran to Pakistan.

Earlier in October last year, Pakistani officials had promised to complete construction of the pipeline inside the country within two years, mainly with Chinese financial support. But low LNG prices have made the country think of alternative attractive options including import of LNG from Qatar, which in turn has further delayed the Iran-Pak gas pipeline project. In 2015, Pakistan signed a 15-year deal with the world’s largest LNG producer to import LNG into the country.

Meantime, the pipeline is feared to face competition from the 1,814 kilometres Turkmenistan–Afghanistan–Pakistan–India (TAPI) gas pipeline. It must be noted that the groundbreaking ceremony of construction works of Afghanistan phase is set to commence on February 23^rd. Moreover, Saudi Arabia has expressed interest to make big investments in the project, which in turn could boost the works.

However, Iran feels that the TAPI gas pipeline is unlikely to pose a challenge to Iran-Pakistan pipeline, mainly on account of the bad bilateral ties between two participating countries-India and Pakistan. The chances of collaboration between the two rivaling neighbors are quite unlikely, Iran noted.