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Iran-Pakistan Sign Extension in IP Gas Line Agreement

Iran-Pakistan Sign Extension in IP Gas Line Agreement

On Monday, the National Iranian Oil Company (NIOC) and Pakistan’s Inter-State Gas System (ISGS) have signed an extended Iran-Pakistan (IP) gas line agreement under which Pakistan will build the said pipeline by August 26, 2024, in its territory.

Iran has withdrawn legal notice after extending the agreement to the IP-GSPA, it served on Pakistan on moving the arbitration court.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 was still unable to establish a 781-kilometer pipeline under its territory from the Iranian border that touched Gwadar and reached Nawabshah due to the impossibility of organizing the required financing following US sanctions, Iran had legally notified Pakistan in February 2019 due to the failure to implement the gas line project and to obtain Iranian gas since January 1, 2015.

The agreement was earlier signed in 2009 during the Pakistan People Party government for 25 years, but since then the project could not get the shape.

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