Pakistan has officially communicated to Iran that it is unable to proceed with the construction of its part of the Mir gas pipeline due to unforeseen and compelling circumstances. Minister of State for Petroleum Musadik Malik conveyed this information during a session in the National Assembly, the lower house of the parliament.
"Pakistan has issued a force majeure and excusable circumstances notice to Iran, which has led to the suspension of its commitment to construct the pipeline," stated the state minister, as reported by Dawn. "The construction of the pipeline can only resume once the international sanctions against Tehran are lifted."
Iran expressed its disagreement with the decision and raised a challenge against it, Minister Malik further noted.
Addressing this statement, the publication pointed out that Pakistan has effectively admitted its incapacity to proceed with the joint cross-border energy project with Iran while Washington's sanctions on Tehran persist, or until explicit approval is granted by Washington for the pipeline's completion.
Previously, Tehran had issued a threat to file an $18 billion claim against Islamabad through international arbitration for its failure to meet obligations under the project. In response, Pakistan's foreign ministry requested financial assistance from the US to cover a potential penalty for the incomplete pipeline or alternatively allow Pakistan to purchase gas from Iran. However, the US did not provide a response to this appeal.
Background on the Pakistan-Iran project
The collaboration between Pakistan's state-owned Interstate Gas Systems and Iran's Iranian Gas Company was initiated in 2009 to construct the gas pipeline. The agreement mandated Pakistan to complete its 800-kilometer pipeline section by January 2015, but construction remains unfinished to date. In contrast, the Iranian section of the pipeline up to the Pakistani border has already been constructed and is ready for operation.
Initially designed to span 2,700 kilometers and cost $1.5 billion, the Mir gas pipeline was intended to stretch from Iran through Pakistan to India. The project was slated for operation commencement in 2014. However, the project faced delays after India withdrew from participation due to perceived security risks, particularly related to the pipeline's safety in the Pakistani segment.
The Iranian segment of the Mir pipeline runs from the Asaluyeh gas field along the coasts of the Persian Gulf and the Gulf of Oman up to the Pakistan border. In Pakistan, the pipeline route passes through the seaport of Gwadar, facilitating gas delivery to consumers in central regions. The pipeline's capacity is projected to transport 21.5 million cubic meters of natural gas a day.
GSV "Russia - Islamic World"
Photo: btr/Creative Commons 2.5
Based on materials from TASS