Pakistan plans to build an 81-kilometer pipeline from Gwadar to the Iranian border

Pakistan has made the decision to proceed with a long-awaited gas pipeline project in two phases. The project’s first stage involves laying 81 kilometers of pipeline from Gwadar, where Iran has already completed its portion, which will later connect to Nawabshah. The Special Investment Facilitation Council (SIFC) has approved this plan. Initially, the focus will be on laying the initial 81-kilometer segment, with the connection to Nawabshah to follow subsequently.

To advance the project, the Petroleum Division will seek approval from the federal cabinet, and funding will be arranged by the finance ministry through the Gas Infrastructure Development Cess (GIDC) board. The primary objective of the initial 81-kilometer pipeline is to provide gas to Gwadar from the IP gas line project. Iran has granted Pakistan an extension until September 2024 to fulfill the project’s requirements, with potential international arbitration and an $18 billion penalty looming if Pakistan fails to comply. However, Iran has expressed a willingness to work with Pakistan to find a resolution before the deadline.

Despite past tensions, both nations are now collaborating to overcome the project’s hurdles. Under the auspices of the SIFC, the Petroleum Division will coordinate with the Ministry of Foreign Affairs to facilitate an Iranian delegation’s visit to Pakistan. Together, they will develop a feasible plan to execute the project.

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