Iranian Khatam-ol-Anbia Construction Headquarters will carry out the second phase of the proposed Iran-Pakistan-India gas pipeline project, dubbed as the Peace Pipeline.
The National Iranian Gas Company (NIGC) and Khatam-ol-Anbia Construction Headquarters reached an agreement over the $200-250 million project, the Mehr News Agency reported.
The 270-kilometer pipeline is considered the second section of Iran's 7th cross-country gas pipeline.
The first phase of the project was put into operation in July.
The 902-kilometer pipeline, which extends from Assalouyeh in the southwest Iran to Iranshahr in the southeast, transfers natural gas from the South Pars field to some southern provinces as well.
The IPI route is designed to transport Iranian gas to Pakistan and India, though the signature of a final deal agreement has been delayed several times over price and political issues.
Iran, Pakistan, and India conceptualized the Peace Pipeline project in 1990s, to help boost peace and security in the region.
Due to the tense India-Pakistan relations, New Delhi stepped back from the later stages of negotiations, although it has never formally withdrawn from the project.
The IPI gas pipeline is a proposed 2,775-kilometer pipeline to deliver natural gas from Iran to Pakistan and India.
Iran's proved natural gas reserves are about 1,000 trillion cubic feet, of which 33 percent are as associated gas and 67 percent is in non associated gas fields. It stands for world's second largest reserves after Russia
Khatam-ol-Anbia Construction Headquarters previously withdrew from the development plan of South Pars gas field's phases 15 and 16 in July.
This was while the South Pars gas field's phases 15 and 16 development plan is currently over 50 percent complete.
An Iranian consortium led by Khatam-ol-Anbia Construction Headquarters signed the $2 billion worth contract for carrying out the development plan of the mentioned phases in July 2006.