Iran is worried over Pakistan’s delay in the construction of multi-billion dollars 781-km Iran-Pakistan (IP) gas pipeline, and has raised its concerns at the highest level in Islamabad, reports The Nation, a Lahore daily, in a by-lined despatch that quotes well placed sources.
Tehran has more or less completed the laying of the pipeline on its side and it is ready to help Pakistan to execute the pipe construction work. First China offered a financial and technical package but backed out in the face of UN sanctions against the Iranian regime. There has been talk of involving the Russians in the work but nothing much has come of the effort thus far.
The occasion for some blunt speak by the Iranians was the delegation level talks Iranian Deputy Minister for Internal Affairs on Petroleum Dr Khalid has with Pakistan’s Additional Secretary Petroleum Abid Saeed. The slow pace on Pakistan side has irked the Iranians who are willing to offer financial and technical assistance. Iran has already offered $500 million, compressors and necessary material of pipelines to materialise project in time. While for Iran the pipeline will be an outlet that would blunt the US led sanctions regime, for Pakistan it would bring relief from energy crisis.
The visiting delegation not only expressed displeasure but also put the hosts on notice: “If Pakistan failed to purchase Iranian gas till 31st December 2014, it would have to pay a heavy fine of one million dollar on daily basis.
The Nation’s report says that Islamabad tried to cajole Tehran and assured that there would be no delay in either gas purchase or pipeline work. Tenders have been called for the engineering, procurement and construction of the IP project; the work would be awarded soon. .
The IP pipeline has been hanging fire for nearly two decades. Initially it was to be a Iran-Pakistan- India pipe line. New Delhi backed out over security considerations and over issues related to tariffs. China came into the picture later. But the plan did not go beyond the drawing board. Of late there are moves to revive the TAPI project in which the Americans are interested. Even Pakistan has taken enthusiastic part in the TAPI negotiations.
This makes its dialogue over IP line no more than good PR exercise to keep a fellow Muslim neighbour in good humour.