Tehran will not file a case with the International Court of Arbitration over Pakistan's procrastination to complete its share of Iran-Pakistan Gas Pipeline Project—aka Peace Pipeline—on its territory, Iran's deputy oil minister for international affairs said.
"Islamabad has expressed its willingness to implement the project without any foreign pressure that is why both sides are planning to resolve the issue through negotiations," Amirhossein Zamaninia was also quoted as saying by ILNA.
According to the official, talks will be held soon either in Tehran or in Islamabad.
"In June 2016, Pakistan shelved the project in the wake of pressure from a Persian Gulf country, irking officials in Iran at that time. Subsequently, Tehran indicated that it would move the arbitration court against Pakistan for not completing the project on its territory," he said.
Iran and Pakistan signed an agreement in 2009 to lay a pipeline to deliver 22 million cubic meters per day of gas from South Pars Gas Field in the Persian Gulf to Pakistan's Balochistan and Sindh provinces.
The pipeline's construction was to commence in 2012 and be completed in two years.
However, Islamabad has dithered over constructing 700 kilometers of the pipeline on its territory, blaming financial constraints as well as past sanctions.
Rejecting such claims, Zamaninia stressed that the looming unilateral US sanctions against Iran's oil sector have nothing to do with the country's gas exports as it is still selling gas to Turkey and Iraq.
Setting Priorities
Asked about the Turkmenistan-Afghanistan-Pakistan-India gas pipeline project—aka TAPI—he said, "There are no connections between the two pipelines as they are developed separately, yet Pakistani officials should set their priorities right."
Referring to a meeting between Pakistan's Federal Petroleum Minister Ghulam Sarwar Khan and Iranian Ambassador to Pakistan Mehdi Honardoust in Islamabad last week, Zamaninia noted that the Pakistani minister is expected to visit Iran in the near future to discuss cooperation in importing oil petroleum products to curb fuel smuggling as well as the Peace Pipeline.
The two sides have agreed to form a working group tasked with overcoming obstacles on the project prior to Sarwar Khan’s visit to Iran.
The newly-elected Pakistani Prime Minister Imran Khan told Honardoust last week that uplifting the national economy is his top priority.
He also expressed his country's willingness to hold constructive talks with Tehran on the long-delayed initiative.
“IP gas project is a top priority for Pakistan more than any other gas pipeline project,” Sarwar Khan told Honardoust. According to the ambassador, Peace Pipeline will be a game-changer for the region and will lead to fundamental economic changes in Pakistan.
