Cabinet approves construction of 80km segment of Iran-Pakistan gas pipeline

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The completion of the Iran-Pakistan gas pipeline project, which would stretch from the Iranian border to Gwadar, is expected to take a year. Funding for the project will be sourced from the Gas Infrastructure Development Cess (GIDC). The Cabinet Committee on Energy (CCoE) has approved the construction of the 80-kilometer pipeline within Pakistan’s territory. This decision followed the recommendations of the Ministerial Oversight Committee, established by the prime minister in September 2023. The project has faced delays due to concerns about US sanctions on Iran. It is crucial to note that Iran has set a deadline for completion by September 2024, after which it may pursue international arbitration for breach of contract. Senator Muhammad Abdul Qadir, Chairman of the Senate’s Standing Committee on Petroleum, has stated that formal discussions between both countries will commence in the coming weeks.

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