Iran-Pakistan Gas Pipeline
The Iran-Pakistan gas pipeline, also known as the Peace Pipeline, is a proposed 2,775-kilometer pipeline to deliver natural gas from Iran to Pakistan.
Background
First conceived in 1989, the pipeline has been under discussion between Iran and Pakistan to enable transfer of natural gas from Iran’s South Pars fields to supply growing energy needs of Pakistan’s population centers.
Route
Originating from the South Pars field in southern Iran, the pipeline would span 1,100 km in Iran before crossing into Balochistan province of Pakistan. It would then travel another 1,675 km to connect to Pakistan’s national gas distribution system.
Capacity
The pipeline would have a design capacity to transport 750 million cubic feet per day of natural gas, nearly 20% of Pakistan’s current gas output.
Status
While Iran completed its section of the pipeline by 2008, Pakistan has intermittently stalled on the project due to pressures over nuclear sanctions against Iran as well as security and financing concerns.
The Iran-Pakistan gas pipeline project has faced obstacles, including US sanctions on Iran. While Iran completed its section of the pipeline, construction on the Pakistani section has been delayed. Despite Iran holding up its end of the deal, progress stalled due to US sanctions levied against Iran. Negotiations between the two countries must be concluded by March 2024 to avoid legal complications from the contractual agreement, which stipulates Islamabad must fulfill its pipeline obligations by September 2024. However, on February 23, 2024, Pakistan approved moving forward with construction of the Iran-Pakistan gas pipeline, amid fears of a potential $18 billion penalty for failing to complete the project on time. The private company Inter State Gas Systems is carrying out construction of the Pakistani section, expected to cost approximately $158 million, using funds from the Gas Infrastructure Development Cess tax.
