Tehran nuclear deal revives hope for Pakistan-Iran gas pipeline: minister

Launched in 2010, the project envisages the creation of an 1,800 kilometre (1,100 mile) pipeline from Iran to Pakistan, which has for years been blighted by an energy crisis that has stunted its economic growth.

Iran completed its part of the project in 2013, but Pakistan put construction on hold citing US and European sanctions on Tehran linked to its nuclear programme.

The International Atomic Energy Agency is set to verify Iran has implemented its committments in December, paving the way for sanctions to be lifted from the start of next year.

“A lot of issues that have built up over the years will be resolved, especially the Iran-Pakistan pipeline, where we have a contractual obligation to buy the gas and they have the obligation to deliver the gas but that has been hit by the sanctions,” Shahid Khaqan Abbasi, Pakistan’s Minister of Petroleum and Natural Resources, told AFP.

“Now hopefully, as the sanctions are removed, it will facilitate us in addressing our energy needs and also meet the contractual obligation,” he added.

Pakistan’s key ally China is currently financing the construction of a gas pipeline from the southern town of Nawabshah to the deepwater port of Gwadar, not far from Iran.

Once that is built, Pakistan will “only have to build another 80 kilometres” of pipeline to link up to Iran, and could eventually extend the project as far as its northern border with China, said Abbasi. -AFP