Minister for Power and Petroleum, Muhammad Ali recently
visited Iran to discuss the project and other energy sector related issues.
During the meeting both sides agreed to develop consensus to proceed with the
project.
The Gas Sales and Purchase Agreement (GSPA) between Pakistan
and Iran was signed in June 2009 and became effective after completing the
Conditions Precedents in June 2010.
Under the project, Iran will supply gas from onshore gas
processing facility at Assaluyeh to traverse a distance of 1,150 Kms up to
Iran-Pakistan border (Iran Section).
Pakistan section of the pipeline is to be laid from
Iran-Pakistan border up to Nawabshah in Pakistan covering a distance of over
781 Km. Iran is obligated to supply 750 MMCFD under GSPA.
According to sources, Pakistan and Iran are engaged in the
revival of the project. The technical team from Pakistan visited Iran in
January 2023 to discuss the way forward. The Iranian technical team visited
Pakistan in August 2023 wherein possible implementation options were discussed.
The Prime Minister constituted a high level Ministerial
Oversight Committee (MOC) for the project to find robust workable solutions and
recommend way forward keeping in view its economic viability, financing as well
as political and diplomatic consequences. The Committee is holding regular
meetings and considering steps that can be taken for implementation.
Based on recommendations of the Committee, Petroleum
Division and Ministry of Foreign Affairs (MoFA) are actively engaged with US
authorities to seek exemption from sanctions. Alternative, project
implementation options are also being explored to fulfill Pakistan’s
obligations under GSPA.
Pakistan is actively pursuing legal and diplomatic avenues
to implement the project. International legal counsels are also engaged to help
seek waiver from US sanctions and formulate workable implementation options.
