China Drops Plan to Join Iran-Pakistan Gas Pipeline

China has dropped plans to join Iran-Pakistan (IP) gas pipeline as the project faces sanctions threat from US, says Pakistan Tribune newspaper.

The newspaper states that China has instead looking to join the TAPI gas pipeline project.

Participating countries are finalising tender documents for the TAPI pipeline in consultation with the Asian Development Bank that is playing the role of transaction adviser, says Pakistan Tribune.

However, progress on the pipeline is slow due to some unresolved issues between Turkmenistan and US companies including Chevron and ExxonMobil, the newspaper reports. Gas rich Central Asian nation has said that only that company will get the contract for laying the gas pipeline that has gas extraction contracts in Turkmenistan.

"This process is yet to be finalised. It could be expedited when the petroleum minister of Pakistan and delegations of Afghanistan and India visit Turkmenistan in the second week of May to attend an energy conference where they will hold meetings on the sidelines," Pakistan Tribune quotes an official as saying.

The two US firms have been shortlisted, which will be given tender documents for vying for the pipeline contract.