ISLAMABAD: The interim Cabinet Committee on Energy (CCoE) approved work on the first phase of the Iran-Pakistan (IP) gas pipeline on Friday, raising hopes for the country’s energy security after more than a decade of delays.
According to a statement from the Ministry of Energy, the cabinet committee discussed a report of the Petroleum Division’s work on the IP Gas Pipeline during its meeting today.
According to the statement, the CCoE approved the recommendations of the Ministerial Oversight Committee for the project, which was formed by caretaker Prime Minister Anwaar-ul-Haq Kakar in September 2023. The committee recommended that work begin on the 80-kilometer segment of the pipeline inside Pakistan — from the Pakistan border to Gwadar in the first phase.
According to the announcement, Inter State Gas Systems (Pvt) Ltd would implement the project and fund it through the Gas Infrastructure Development Cess.
According to the government, all concerned divisions have given their approval to proceed with the project to assure gas supply to Pakistanis, addressing the country’s growing energy needs.
The ministry noted that the project would not only improve Pakistan’s energy security, but would also strengthen local business confidence, which would be secured by increased gas supply.
“This will also catalyse the economic activity in the province of Balochistan and will contribute to the economic progress of Pakistan,” the ministry said in a statement.
The project has been experiencing delays since 2014. Iran filed a third notice to Islamabad in January, renewing its intention to file an arbitration case for failing to install the pipeline as part of the IP gas line project.
According to The News, Pakistan has argued that the project cannot be implemented in its territory due to US sanctions imposed on Iran, a viewpoint to which Tehran has never agreed, claiming that the US penalties are unjustified. Iraq and Turkey have been utilizing Iranian gas for a long time, thanks to waivers from US sanctions.
However, because Pakistan is also showing signs of progress, Iran has already extended the 180-day limit to September 2024 for Pakistan.
