Iran won’t suspend gas export to Pakistan: Oil minister

Tehran to invest $1 billion more to complete the project


Afp November 27, 2014

ISLAMABAD: Iranian Oil Minister Bijan Namdar Zanganeh has said that Iranian government ‘will not suspend’ its gas export contract with Pakistan.

According to IRNA news agency, the minister said, the country (Iran) was ready to begin gas export to Islamabad.

“Iran has almost completed the establishment of the IP pipeline in its territory and is ready to export gas to Pakistan as soon as the country builds its own section of the pipeline,” he said.

The oil minister noted that Iran’s gas output during March 21-November 21 has increased by 100MCM year-on-year and amounted to more than 600MCM per day.

Earlier, Zanganeh had said that Iran is committed to its gas contract with Pakistan, urging the country to show the same commitment.

Islamabad will initially receive 20MCM of gas per day after completing the remaining section of the Iran-Pakistan pipeline in its territory.



The gas contract signed between Tehran and Islamabad requires the Pakistani government to pay $3 million worth of compensation to Iran for each day of delay as of the beginning of 2015.

Following the Iranian Oil Ministry’s ultimatums to Pakistan demanding the country complete the project on time, Pakistani Minister of Petroleum and Natural Resources Shahid Khaqan Abbasi travelled to Iran last week to extend the deadline.

Earlier, Ali Majedi, a deputy oil minister, said Iran has spent $2 billion on the establishment of the pipeline and will invest another $1 billion to complete the project.

Majedi noted that even if the Pakistani government were to appoint the project’s contractor right now, it would only be able to complete the project in about four years. 

Published in The Express Tribune, November 27th, 2014.

COMMENTS (5)

cautious | 7 years ago | Reply

“Iran has almost completed the establishment of the IP pipeline in its territory and is ready to export gas to Pakistan as soon as the country builds its own section of the pipeline,”

We have read numerous articles on ET and other Pakistan newspapers that Iranian section of IP was completed long ago - well before the showcase signing of the agreement. Now we hear the Iranian portion of the pipeline is "almost" completed. What's up with that?

SD | 7 years ago | Reply

Persian Govt has spent $2 billion on the establishment of the pipeline and will invest another $1 billion to complete the project as they are working on it day and night.On the contrary on Pakistan side nothing has started as yet !!!!! Pakistani government has to appoint the project’s contractor right now as none is there in sight as all contractors are scared for money and life , then only Pakistan govt be able to complete the project in about four years if all goes well as planned but doubtful and due to the contract claws Pakistani government has to pay $3 million worth of compensation to Persia for each day of delay as of the beginning of 2015.

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