ISLAMABAD: The Interim Cabinet Committee on Energy (CCoE) on Friday approved work on the first phase of the Iran-Pakistan Gas Pipeline (IP), raising hopes of boosting the country’s energy security as the project has been delayed for more than a decade.
The Department of Energy said in a statement that the Petroleum Division’s summary regarding the IP pipeline was discussed by a cabinet committee at today’s meeting.
The CCoE, the statement said, approved the recommendation of the Ministerial Oversight Committee for the project, set up by interim Prime Minister Anwaar-ul-Haq Kakar in September 2023, with the committee recommending that work on the 80-km stretch of the pipeline within Pakistan — from the Pakistan border to Gwadar — begin in the first phase.
The project will be implemented by Inter State Gas Systems (Pvt) Ltd and will be funded through Gas Infrastructure Development Cess, the statement said.
All the concerned divisions, the ministry said, have given their nod to go ahead with the project to ensure gas supply to the people of Pakistan, thereby addressing the growing energy needs of the country.
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The ministry added that the project will not only strengthen Pakistan’s energy security but boost the confidence of the local industry, which would be ensured by increased gas supplies.
“This will also accelerate economic activity in Balochistan province and contribute to the economic progress of Pakistan,” the ministry added.
The project has been facing delays since 2014. In January, Iran sent a third notice to Islamabad renewing its intention to move the arbitration court for not laying the pipeline under the IP pipeline project.
The News reported that Pakistan argued that it could not carry out the project on its territory due to US sanctions on Iran, a view never supported by authorities in Tehran, who said US sanctions were not justified. Iraq and Turkey have long used gas from Iran because they managed to evade US sanctions.
However, as Pakistan also shows intentions to move forward, Iran has already extended Pakistan a 180-day deadline until September 2024.
