ISLAMABAD – Pakistan has informed Iran in writing that it cannot executethe Iran-Pakistan gas pipeline project as long as Tehran is under UnitedStates sanctions regime.
According to Mobin Saulat, the managing director of Inter State Gas, “Underpresent US sanctions on Iran, it is impossible to execute the IP[Iran-Pakistan] gas pipeline project and we have conveyed it to them [Iran]in writing recently,” reports a private news chanel quoting Arab News.
In February this year, a new round of negotiations were launched betweenPakistan and Iran after Tehran formally issued a notice to Islamabad andsaid it was moving an arbitration court against Pakistan for failing to laydown the pipeline in Pakistani territory in the timeframe stipulated in thebilateral agreement.
“We have time till August this year to legally respond to Iran’s legalnotice and settle the issue through negotiations,” Saulat said. “We arehopeful to find a solution through discussions with Iranian officials.”Sault further said, Pakistan was still committed to executing the project,but only if international sanctions on Iran were lifted.“We cannot risk USsanctions by going ahead with the project as America has clearly said thatanybody who will work with Iran will also be sanctioned,” he said.
Salut said, Iranian authorities were of the view that US sanctions did notapply to the IP gas project, adding that Pakistan had thus sent Tehran aquestionnaire to ascertain exactly how that was the case.“We may not have a weak case if Iran moves the international court,” Saulatsaid. “We are trying to handle it professionally.”
President Donald Trump on Wednesday imposed new US sanctions targetingIran’s revenue from export of industrial metals and threatened furtheraction unless Tehran “fundamentally” changed its behaviour.
According to the agreement signed between Paksitan and Iran in 2009, theIran-Pakistan gas pipeline project was to be completed by December 2014 andwould deliver 21.5 million cubic meters of gas per day to Pakistan.