Foreign Office statement did not say when the pipeline would be completed. PHOTO: FILE
The United States opposes the $7.5-billion project because it could violate sanctions imposed on Iran over nuclear activities Washington suspects are aimed at developing an atom bomb, although Tehran denies this.
The announcement comes after the Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi traveled to Tehran with a high powered delegation to kick start work on the pipeline. Facing a massive energy crisis, gas for consumers was curbed for two days in Punjab on Tuesday, highlighting just how severe the crisis is and how badly Pakistan needs the gas injection from Iran.
But little progress has been made on the pipeline in Pakistan for lack of funds and warnings it could be in violation of US sanctions, threatening string of aid that Pakistan gets.
Iran, for its part, has spent hundreds of millions of dollars and nearly completed the 900-km (560 mile) pipeline to the Pakistan border.
The Ministry of Foreign Affairs release said both sides had agreed to speed up work to finish construction of the pipeline.
"It was also agreed that a meeting will be held shortly between the experts of both sides to review parameters for accelerating work on I-P Gas pipeline," the foreign ministry said in a statement.
It did not say when the pipeline would be completed. Abbasi was accompanied by Secretary Petroleum Abid Saeed and MD of the Pakistan’s Interstate State Gas System Mobin Saulat.
The major enabler for the breakthrough could be the pact between Iran and global powers that would see the US relax some of the restrictions.
Iran agreed with six world powers last month to curb its nuclear programme in return for some easing of sanctions in a landmark pact seen as a first step towards resolving a decade-old dispute over the nation's nuclear programme.
Under the contract, Iran would export 21.5 million cubic meters of gas per day to Pakistan from next year.
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@kamran:
Good assessment.
Well, I don't think that Hagel gave any positive signal for the pipeline project neither Pakistan is serious to pursue the project againt US approval. Infact, this is pathetic move to respond Hagel's warning to ensure NATO movement through KPK otherwise the US government may stop the promised aid for Pakistan. Since we are always short of good moves and cards, this is only the best possible response we could come up with. However, the Iranian side may also be aware, no further progress could be made from here onwards and US officials may be laughing upon listening this in their offices.
Good news. We need gas to cook.
@pakistani bloach:
Why do you think Indians would be jealous EVEN IF Pakistan was oing ahead with this pipeline when India voluntarily chose nt o be art of the pipeline?
In any case, who actually believes that the work on this pipeline will be speeded up? Pakistan does not have money to build. He pipeline and has not even hired a contract to build it.
@Muslim Leaguer: Once a contract is signed by the country, it has to be fulfilled OR the agreed compensation for contract cancellation has to be paid. That is the nature of contracts.
Gas and construction from iran,money from US and china, so what is the contribution of pakistan ?
@ seriously? Probably you haven't read my comment in totality... It is not mutually beneficial for Pakistan to purchase Iranian gas at US$13 per unit (& continuously rising because of pegging with crude oil) as against the cost of US$3.50 from Sui fields. You might afford to pay 4 times rise in your gas bills but majority of Pakistanis can't! PPP agreed this price in haste because it was not serious in the first place.
This is not pipeline but only 'pipedream'
@Muslim Leaguer: "The PMLN Government should renegotiate the price of gas with the Iranian Government".
Do you understand how contracts work? Once signed, it holds. The parties cannot interminably hold up implementation claiming that they wanted to renegotiate.
@asfandyar: Whether anyone wants to admit it or not, no gas pipeline is possible without the understanding of the US. Obviously Pakistan should do what is in its best interests to support the economy and provide gas starved consumers with facilities. However Nawaz Sharif is smart enough to know how to do things without damaging the economy. He seems on track to improving the economy and do the things that weren't done under Musharraf and the last PP government. Recall the last time Pakistan was forced to show its nuclear deterrent in the face of Indian aggression and sabre rattling? He agreed to nuclear testing but the nation had difficulty dealing with the sanctions afterwords. I don't think Nawaz Sharif wants a repeat of the same issues.
great news. I smell something is burning across the border.
Beware of NGO's bearing gifts.
What work? Pakistan hasn't installed a single length of pipe - haven't even determined the exact route of the pipeline nor hired a contractor. IP reminds me of Thar Coal and LNG - lots of pronouncements with little substance.
Ohh so Sharif has received signal from uncle Sam....