ISLAMABAD: The Inter State Gas Systems (Private) Limited (ISGS) and the National Iranian Gas Company (NIGC) signed a revised agreement for stalled Iran-Pakistan gas pipeline project.
As per the revised agreement, Pakistan will no longer have to pay fine to Iran and Iran will not go to an arbitration court for delay in the pipeline construction.
The two countries will work together to find a viable solution to the project. Furthermore, Pakistan can build the IP pipeline till the year 2024 for buying 750 million cubic feet of natural gas per day (MMCFD) from Iran.
The Iran-Pakistan gas pipeline, also known as the Peace pipeline, or IP Gas, is an under-construction 2,775-kilometre (1,724 mi) pipeline to deliver natural gas from Iran to Pakistan.
The length of the pipeline that will be supplied from the South Pars field has been given variously as 900 kilometres (560 mi), 1,035 kilometres (643 mi), and 2,775 kilometres (1,724 mi). It starts from Asalouyeh and stretches 1,172 kilometres (728 mi) through Iran.
The Iranian section is known as Iran’s seventh cross-country gas pipeline. The first 902-kilometre (560 mi) part of this section runs from Asalouyeh to Iranshahr. The second 270-kilometre (170 mi) part runs from Iranshahr to the Iran-Pakistan border.