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Pakistan-Iran gas pipeline runs into delays

By IANS,

Islamabad : The proposed Pakistan-Iran gas pipeline has run into delays as Islamabad has failed to raise the necessary funds, a media report said Thursday.

Pakistani officials have told their Iranian counterparts that the pipeline was unlikely to be completed by the scheduled deadline of December 2014, the Urdu daily Jang reported.

According to reliable sources, Pakistan has neither been able to raise the necessary $1.24 billion funding nor plan out the proposed route for the pipeline within its territory.

Iran has completed a 900 km stretch of the 1,150 km long pipeline from its South Pars gas field to Balochistan and told Pakistan it would complete the remaining portion in six months.

But Pakistan has not yet even begun to acquire land on which its 750 km long stretch will come up, the report said.

Meanwhile, the paper quoted Federal Petroleum Secretary Ejaz Chaudhary as denying the delay was due to American pressure.

Chaudhary said a proposal for the $1.24 billion funding had been prepared. A report would be received in 14 months, after which the funding and other matters would be taken up.

Originally the Iran-Pakistan-India pipeline, the project had already been delayed due to several reasons, including India’s concerns, which led Iran and Pakistan to go ahead with their part of the pipeline.

India had denied it was abandoning the project due to US pressure, saying it had concerns about security and the pricing of the gas. Meanwhile, China has evinced interest in becoming part of the project.