Pakistan, Iran sign extension in IP gas line agreement
ISLAMABAD: Gas companies of Pakistan and Iran on Monday have signed extended Iran-Pakistan (IP) gas line agreement after mutual consent.
The top officials of National Iranian Oil Company (NIOC) and Pakistan’ Inter-State Gas System (ISGS) signed the amended IP gas deal under which Pakistan will build the said pipeline by August 26, 2024, in its territory.
After agreement to extend the IP-GSPA, Iran has withdrawn legal notice it served on Pakistan on moving the arbitration court.
Under the IP gas project, Pakistan was to import gas of 750mmcfd which was to increase up to 1,000mmcfd and an additional quantity of 250mmcfd was to be used in Gwadar.
Since Pakistan remained unable to lay down 781 kilometres pipeline under its territory from Iranian border touching Gwadar and reaching up to Nawabshah because of failure to arrange the required financing in the wake of US sanctions, Iran had served legal notice on Pakistan in February 2019 for failure in implementing the gas line project and getting Iranian gas from January 1, 2015.
The agreement was earlier signed in 2009 during PPP government for 25 years, but since then the project could not get the shape.