January 26, 2024
The Pakistan Cabinet Committee on Energy (CCoE) has approved the commencement of work on its part of the Iran-Pakistan (IP) gas pipeline project. The Pakistani portion would extend 80 km from the Iranian border to the port location of Gwadar in the Balochistan Province.
In November 2023, the two nations decided to move forward with the US$7.6 billion project, with a new round of discussions likely to resume construction.
Pakistan’s Interstate Gas Systems (Pvt) Ltd will be in charge of carrying out the project, which will be funded by the Gas Infrastructure Development Cess.
Iran has given a 180-day extension till September 2024 to avoid legal action in international courts. Experts warn that diplomatic ties between Pakistan and Iran may be strained if Iran takes legal action to safeguard its rights regarding the pipeline.
Source: Energy Ghana