Pakistan, Iran Discussing Gas Deal Amendments

Pakistan is currently negotiating amendments in the gas deal it has with Iran, according to Daily Times, a local newspaper.

"A draft amendment has been shared with Iran, and it has agreed to negotiate the same along with some other amendments in the Gas Sale Purchase Agreement (GSPA),” an official told the newspaper.

Pakistan expects a renegotiated deal will help in facilitating the implementation of the already-delayed Iran-Pakistan (IP) gas pipeline project. The current agreement was signed in 2009.

It was also said that the revised timeline for completion of the project would be decided mutually in the forthcoming meetings between the two countries, Daily Times reported.

Iran has already built 900 km length of the pipeline on its territory while Pakistan still has to start work on the pipeline. Once the pipeline is operational, about 250 million cubic feet gas would be imported from Iran during first year, while in the second year the import of gas would be enhanced to 500 million cubic feet while in the third year 750 million cubic feet gas would be imported.

Iranian gas exports were to commence on January 1, 2015. Since, the project could not be completed Pakistani side proposed to extend the time for completion of the project,

The future of much delayed Iran-Pakistan (IP) gas pipeline remains uncertain as Pakistan has not been able to raise funds to complete the section of the pipeline would pass through its territory as the project still attracts some sanctions.