India, Pakistan Are Very Significant Markets for Iran's Gas

India and Pakistan could be extremely significant markets for Iranian natural gas, chairman of Coordination Committee of the International Gas Union (IGU) said Tuesday in Tehran.

“Iran has the capacity to increase its gas export and boost presence in the global markets,” Menelaos Ydreos said on the sidelines of an IGU meeting, reported state owned Shana News. “More that 50 percent of the world’s gas is used in Asia. Therefore, there is the potential to supply India and Pakistan with Iran’s gas."

Tehran and Islamabad have been working on a gas pipeline that will take Iranian gas to Pakistan.

The Iran-Pakistan pipeline (IP) project has been much delayed due to western sanctions imposed on Tehran. As per the agreement between the two nations signed in 2009, the first flow of gas to Pakistan should have started by Dec 31, 2014. Iran has already built 900 kilometers of the pipeline on its own soil and is waiting for the 700-kilometer Pakistani side of the pipeline to be constructed.

With Iran having signed a nuclear deal with major global powers earlier this year, sanctions are expected to be lifted which may finally lead to completion of the gas pipeline.

Earlier this month Pakistan once again made an appeal to India to re-joining Iran-Pakistan (IP) gas pipeline project. The IP gas pipeline was originally IPI pipeline but India withdrew from the project under American pressure.