Iran-Pakistan Pipeline

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Iran-Pakistan (IP) Gas Pipeline, also known as the Peace Pipeline, is an under construction pipeline which would deliver gas from Iran into Pakistan. This pipeline was formerly planned to extend to India and was called Iran-Pakistan-India (IPI) Gas Pipeline, however, after India withdrew, Iran and Pakistan went ahead with the plan.

Location

The project will deliver gas from Iran's South Pars field to Baluchistan and Sindh provinces in Pakistan.

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Project Details

• Operator: Ministry of Petroleum of Iran
• Owner: Ministry of Petroleum of Iran
• Parent company: Ministry of Petroleum of Iran
• Capacity: 750 million cubic feet per day
• Length: 2,775 km
• Diameter:
• Status: Construction
• Start year:
• Cost:
• Financing:
• Associated infrastructure:

Background

The Iran-Pakistan pipeline, also known as Peace Pipeline, emerged from a plan dating as far back as 1994 and had originally included India. The $7.5 billion, 1,700-mile project would bring gas from the South Pars Gas Fields through Baluchistan (in western Pakistan) into India. The project has stalled multiple times. In 2008, a deal was nearly struck between the three countries until India decided to move towards an alternative pipeline project (TAPI). Sanctions on Iran coupled with pressure from the United States most likely influenced India's decision to leave the deal and move towards an alternative that excluded Iran.

After India pulled out of the plan for the original pipeline project, Iran and Pakistan remained in partnership and signed a deal in 2009 The pipeline's construction was planned to begin in 2012 and be completed by 2014. However, the project faced significant delays as as Pakistan failed to commit to the construction of its portion of the pipeline. U.S. sanctions on Iran in 2012 caused Pakistan to backtrack on the project. Additionally, in 2015, Pakistan agreed to import gas from Qatar, further weakening the possibility and economic necessity for Pakistan to complete the pipeline. In October 2018 the speaker of the Iranian parliament Ari Larijani blamed the ongoing threat of U.S. sanctions on Iran for the delay in building the pipeline.

From 2017 to 2019 there were no development updates to the project. Iran has since completed construction of its part of the pipeline. The construction of Pakistan's portion of the pipeline was inaugurated in March 2013, but has been stalled ever since.

In September 2019, the Inter State Gas Systems (ISGS) of Pakistan and the National Iranian Gas Company (NIGC) drafted a new agreement for the construction of the pipeline. Under the new agreement, the countries would "mutually chalk out a practical solution for the completion of the project" and Pakistan would be expected to construct its part of the project by 2024.

In May 2023, Pakistan's Public Accounts Committee expressed concern that the country would have to pay a hefty penalty of US$18 billion if it fails to complete the portion of the Iran-Pakistan (IP) gas pipeline project on its territory by February-March 2024.

In August 2023, minister of state for petroleum, Musadik Malik, informed the National Assembly by that Pakistan had suspended the completion of the pipeline until such time as international sanctions on Iran are lifted. “The Government of Pakistan is engaged with the US authorities, through diplomatic channels, to seek exemption for the project,” Malik said in written testimony. “All necessary actions are being taken to construct the gas pipeline at the earliest.”

In February 2024, the caretaker federal cabinet committee in Pakistan approved the construction of an 80 km section of the pipeline within Pakistan, extending from the border to Gwadar.

In March, Islamabad indicated its intention to seek a waiver from U.S. sanctions for the pipeline project. However, later that same week, the United States publicly stated that it did not support the project and warned of the potential risk of sanctions for engaging in business with Tehran.

Route

The Iranian section of the pipeline is 1,100km long. It starts from the Pars energy economic zone to Iranshahr and to Bushehr. It then passes through Fars, Kerman, Hormozghan and sistan – Baluchistan. The Pakistani portion of the pipeline will be approximately 780km long from Pakistan border to Nawabshah. About 665km of the section will run through Balochistan and 115km through Sindh.