Energy minister arrives in Tehran to discuss Pak-Iran Gas Pipeline project

In a significant diplomatic move, a Pakistani delegation, led by Energy Minister Muhammad Ali, has arrived in Tehran for talks with the Iranian government regarding the Pak-Iran Gas Pipeline project.

The discussions are expected to address crucial aspects of the bilateral agreement.

During the visit, Energy Minister Muhammad Ali is slated to engage in talks with his Iranian counterpart.

The delegation also includes officials from Interstate Gas Systems, with Nadeem Bajwa, the Managing Director of Interstate Gas Systems Company of Petroleum Division, among its members.

One key agenda item is Pakistan’s request for an extension of the deadline for the construction of its part of the pipeline, set to reach the Iranian border by March 2024.

Sources suggest that if Pakistan fails to meet this deadline, Iran may resort to legal action, potentially taking the matter to the International Court of Arbitration.

In such a scenario, Pakistan could face a hefty fine of up to 18 billion dollars.

The Pakistani delegation is expected to highlight the challenges posed by sanctions on Iran and seek an extension of the construction deadline in light of these circumstances.

The agreement between the two countries stipulates that Pakistan is obligated to import 75 million cubic feet of gas per day from Iran.

The outcome of these talks holds significant implications for the future of the Pak-Iran Gas Pipeline project, with both countries navigating complex geopolitical and economic considerations in pursuit of their energy objectives.