ISLAMABAD, Sep 16 (DNA): The Inter State Gas Systems (Private) Limited
(ISGS) and the National Iranian Gas Company (NIGC) on Monday signed a
revised agreement for the much-delayed Iran-Pakistan (IP) gas pipeline
project.

Sources familiar with the matter told the media that as per the revised
agreement, Pakistan will no longer have to pay fine to Iran and Iran
will not go to an arbitration court for delay in IP pipeline
construction.

The two countries will work together to find a viable solution to the
project. Furthermore, Pakistan can build the IP pipeline till the year
2024 for buying 750 million cubic feet of natural gas per day (MMCFD)
from Iran.

For more than four years, the IP gas project was off the table due to
international sanctions – both multilateral imposed by the United
Nations and the unilateral clamped by the United States, Canada, United
Kingdom and the European Union.

The unilateral sanctions imposed by the US were the most severe amongst
all international restrictions – Iran Sanctions Act 1996, Comprehensive
Iran Sanctions, Accountability and Divestment Act 2010 and National
Defence Authorisation Act-2012. The construction work on the Pakistani
section of the pipeline had been inaugurated in March, 2013 and it was
planned to be completed within 22 months.

On Feb 25, 2014, former Minister for Petroleum and Natural Resources
Pakistan, Shahid Khaqan Abbasi told the National Assembly that the
project for the moment is off the table, he cited international
sanctions as the issue, he said ” In the absence of international
sanctions the project can be completed within three years, but the
government cannot take it any further at the moment because
international sanctions against Iran are a serious issue”.

The Iran-Pakistan gas pipeline, also known as the Peace pipeline, or IP
Gas, is an under-construction 2,775-kilometre (1,724 mi) pipeline to
deliver natural gas from Iran to Pakistan.

The length of the pipeline that will be supplied from the South Pars
field has been given variously as 900 kilometres (560 mi), 1,035
kilometres (643 mi), and 2,775 kilometres (1,724 mi). It starts from
Asalouyeh and stretches 1,172 kilometres (728 mi) through Iran.

The Iranian section is known as Iran’s seventh cross-country gas
pipeline. The first 902-kilometre (560 mi) part of this section runs
from Asalouyeh to Iranshahr. The second 270-kilometre (170 mi) part runs
from Iranshahr to the Iran-Pakistan border. DNA