Tehran Mulls Action Against Islamabad for Gas Pipeline Construction Delay

Iran could take action against Pakistan should Islamabad fail to meet its obligations with regard to the construction of a gas pipeline between the two countries, a senior Iranian official said Saturday.

“Iran has taken plenty of measures with regard to gas exports to Pakistan and has already laid out a major part of the pipelines as far as the Pakistani borders,” Ali-Reza Kameli, CEO of National Iranian Gas Exports Company (NIGEC) , said. “It would be natural that every country would think about the interests of its own people. Therefore, if Pakistan’s action harms our interests we will definitely act in line with terms of the contract.”

In November last year, Iran had ruled out imposing any penalty given Pakistan starts work on the project fast. But with no progress since, Kameli’s latest statement indicates Tehran is fast losing patience.  

According to Kameli, Pakistan has not taken any specific action with regard to the construction of gas pipeline on its soil under the pretext of sanctions on Iran, news outlet IRNA reported.

“Therefore, the project has been held in abeyance…In every contract, penalties are envisaged for non-compliance with obligations, but Iran does not like to enter the phase of penalties vis-à-vis its neighboring country with which it has friendly ties,” said Kameli.

The Iran-Pakistan pipeline 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.