Jul 20, 2014, 3:03 PM
News Code: 2721820
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Pakistan asks for more time to complete gas pipeline project

Tehran, July 20, IRNA – Islamabad has recently offered a new proposal to buy more time to complete its delayed gas pipeline project, it was reported here Sunday.

Deputy Oil Minister for International and Commercial Affairs, Ali Majedi told IRNA that Pakistan's ministry of oil has recently called for holding fresh talks to extend the time to complete the Pakistani section of the project which had to be completed by December 2014.

"Pakistan announced that fulfilling its section of the project needs finance which is not possible due to the anti-Iran sanctions," Majedi said.

Iran, in return, has proposed that its gas be exported to Pakistan, on its due time, through a "third country" which will also complete the Pakistani section of the pipeline, Majedi stressed.

He added, if the two capitals fail to reach an agreement, Iran would preserve its right to receive the daily fine as mentioned in the two countries' previous agreements (eight million dollars per day).

However, he stressed that it is too soon to say whether Iran will demand fine or not.

The Iran–Pakistan gas pipeline, also known as the Peace Pipeline, is an under construction project to deliver natural gas from Iran to Pakistan. It was supposed to be completed by December 2014.

The pipeline starts from Asalouyeh in Iran and stretches 1,172 kilometers (728 mi) through the country. The Iranian section is known as Iran's seventh cross-country gas pipeline.

According to an agreement, signed by Tehran and Islamabad in 2010, each country has to complete its section of the project by 2014.

Iran has completed construction of its section in July 2011.

If Pakistan does not fulfill its obligation to complete the pipeline on its side by the end of 2014, it will have to pay a daily fine of $8 million to Iran until completion of the project.