Iran’s Rouhani urges Pakistan to complete long-delayed gas pipeline

Business Materials 24 April 2017 18:34 (UTC +04:00)

Tehran, Iran, Apr. 24

By Mehdi Sepahvand – Trend:

Tehran is ready to meet Pakistan’s needs in the energy sector, Iranian President Hassan Rouhani told the visiting Pakistani National Assembly Speaker Sardar Ayaz Sadiq, SHANA news agency reported April 24.

The Peace Pipeline has been stretched to the border with Pakistan and Iran is hopeful that Pakistan carries out necessary measures “with stronger will” to complete the project, Rouhani noted.

Iran may cancel the gas pipeline deal with Pakistan due to long-delayed construction works, the head of National Gas Company, Hamid Reza Araqi, said Jan. 27.

Iran signed a deal with Pakistan during Mahmoud Ahmadinejad’s presidency to export 22 million cubic meters per day (mcm/d) of gas.

Tehran even offered a $500 million loan (a third of the pipeline’s cost) to Islamabad to start pipeline construction in Pakistan’s territory, but then withdrew citing financial problems under sanctions.

Pakistan should have started Iranian gas imports in early 2015, but it has not started construction of its part of the pipeline.