ISLAMABAD – Pakistan has extended an invitation to Iran for holding crucialtalks on Iran-Pakistan gas pipeline project.
“Yes, we have invited authorities concerned in Tehran to come to Islamabadin the current month of May, and hold talks on [the] IP gas line project,”a senior official at Petroleum Division (Energy Ministry) has informedmedia.
“The petroleum division has invited the Iranian authorities on the ordersof the Prime Minister Shahid Khaqan Abbasi.”
Both sides would put their heads together to find out the way out how toproceed for implementation of the project in the presence of the USsanctions and hawkish attitude of the Trump administration.
Pakistan and Iran have already agreed to open up and review the gas salespurchase agreement (GSPA) inked between the two in 2009 following thereduction in the prices at which Pakistan is procuring the LNG from Qatarand is having the imported product through spot purchasing and the price ofgas settled under TAPI gas line.
Pakistan and Iran signed GSPA in 2009 under IP gas pipeline project in eraof Pakistan People’s Party.
Since then the project could not get the shape. Tehran had alreadyindicated to authorities concerned in Islamabad saying it has made up itsmind to move arbitration against Pakistan for unilaterally shelving theproject.
To avoid the US sanctions, the official said, earlier Petroleum Ministryheaded by Federal Minister Shahid Khaqan Abbasi who is now the Premier ofPakistan had carved out the plan under which LNG pipeline was planned to belaid down from Gwadar to Nawabshah. Two LNG terminals were also planned atGwadar Port and to this effect a Chinese company had been awarded thecontract and the said Chinese company had also arranged the financialsupply chain for completing the project.
Iran was told that whenever the sanctions are to be erased, then thepipeline will be extended to Iranian border from Gwadar and then it will becalled as IP gas line. However Donald Trump’s decision to quit Iran Nucleardeal may put the IP project under sanctions from US and make it difficultproject for Pakistan.