Iran Denies IP Gas Pipeline Completion Deadline Date Extension

Iran denied it has extended the completion date of Iran-Pakistan (IP) gas pipeline project from December 2014 to December 2015, says Tehran Times citing a news report in ISNA news agency.

According to Tehran Times, last week, senior Pakistani Petroleum Ministry officials told Business Recorder that two parties have agreed to extend the completion date of the pipeline project.

On May 24, 2009 Iran and Pakistan signed a bilateral treaty titled Intergovernmental Framework Declaration, while on June 5, 2009 Inter State Gas System of Pakistan (ISGS) and National Iranian Oil Company (NIOC) signed the Gas Sale Purchase Agreement (GSPA), which envisaged the first flow of gas to Pakistan to commence by December 31, 2014.

Iran laid the pipeline on its side by investing $2 billion but Pakistan failed to lay the pipeline on its side of the border due to lack of finance.