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- The pipeline will be constructed from Pakistan’s border with Iran to its port city of Gwadar in the first phase
- The project is likely to boost the country’s energy security, strengthen local industry with enhanced gas supply
KARACHI: Pakistan decided to build an 80-kilometer segment of the Iran-Pakistan (IP) gas pipeline on Friday after the Cabinet Committee on Energy approved the recommendations of a ministerial oversight committee evaluating various dimensions of the project after it was constituted by Caretaker Prime Minister Anwaar-ul-Haq Kakar last September.
Originally intended to supply gas from Iran to both Pakistan and neighboring India, the project was referred to as the IPI pipeline. However, India later withdrew from the project over concerns related to pricing and security, leading to the current designation as the IP gas pipeline.
The project remained stalled for a significantly long period since it could potentially create problems for Pakistan due to the international sanctions targeting Iran.
The United States, in particular, expressed opposition to the project, and there had been concerns that Pakistan could face economic sanctions if it proceeded with it.
“The [Cabinet] Committee [on Energy] recommended to start work on the 80 km segment of the pipeline inside Pakistan i.e. from Pakistan border up till Gwadar in the first phase,” said an official statement circulated by the Petroleum Division of Energy Ministry. “The Project will be executed by Inter State Gas Systems (Pvt) Ltd. and will be funded through Gas Infrastructure Development Cess.”
“All the concerned divisions gave a positive nod to move ahead with the project to ensure gas supplies to the people of Pakistan, thereby addressing the increasing energy needs of the country,” the statement added.
The project is expected to boost the country’s energy security and strengthen the local industry that can be assured sustainable and enhanced gas supplies.
The construction of the IP pipeline is also expected to catalyze the economic activity in Pakistan’s southwestern Balochistan province and which can positively impact the national economy.