Iran may cancel $7bn gas pipeline deal with Pakistan: Reports

Author: Web Desk

TEHRAN: Iran could cancel the gas pipeline project with Pakistan due to concerns about construction work, National Gas Company Head Hamid Reza Araqi said on Saturday.

Hamid Reza said that Iran is faced with three options, either to continue with the pipeline, restart negotiations to reassess the project or call it off.

He also asked Pakistan for the swift completion of the project on its side.

The “peace pipeline” deal consists of import of 22 million cubic meters per day of gas by Pakistan and was signed during former Iranian President Mahmoud Ahmadinejad’s tenure.

Pakistan was supposed to start gas import in early months of 2015, but work has not been started on the Pakistan side.

Iran has also failed to finish the IGAT7 project which was to transit South Pars field’s gas to the borders with Pakistan.

Pakistani politicians have repeatedly stated the country’s seriousness to complete the project, while stating that sanctions by the United Nations and the US on Iran slowed the whole process down.

The 7 billion dollar gas project has faced repeated delays since its inception.

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