America Says “Absolutely Not” on Pak-Iran Gas Pipeline
ISLAMABAD: Pak-Iran Gas Pipeline
Pak-Iran gas Pipeline a top official at Pakistan’s state-owned Interstate Gas Systems said on Friday that Pakistan has written to Iran informing. America says Absolutely not on pak-Iran gas Pipeline, carry out the project as long as Tehran is subject to US sanctions. This puts a final nail in the coffin of a project.
That was conceived in the 1990s to connect Iran’s massive South Pars gas field to India via Pakistan.The United States has stated that “helping Pakistan address its energy shortage crisis is a priority” for Washington.
India and Pakistan’s participation in the 7 dollars billion project has been fiercely opposed by the US. Which claims it violates sanctions. A year after in king a nuclear agreement with Washington. India withdrew from the project in 2009, citing financial and security concerns.
Moreover, A significant obstacle to the majority of gas pipeline projects in the region is the US sanctions on pakistan -Iran Gas Pipeline. The Head of State the administration of Donald Trump has threatened to impose. Its own penalties on those that continue to purchase Iranian oil. The European allies of Washington have attempted, but failed, to devise strategies to mitigate the economic effects of the US action.
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“We have informed them [Iran] in writing that the Pak-Iran Gas Pipeline project cannot proceed under the current US sanctions against Iran”. Interstate Gas Systems managing director Mobin Saulat told Arab News.
The government has given the business authority to construct natural gas import projects, such as the America absolutely not Pak-Iran Gas Pipeline, and it is under the Petroleum Division of the Pakistani Ministry of Energy.
Following Tehran’s official announcement, IP Pakistan and Iran have begun a new round of talks. Declared in a February notice of this year that Pakistan will face legal action in an arbitration court for its failure to install the pipeline in Pakistani territory within the time range outlined in the bilateral agreement.
“Until August of this year, we have the legal right to reply to Iran’s legal notice and resolve the matter through talks,” stated Saulat. “We are optimistic that talks with Iranian officials will lead to a solution.”
As per the terms of the 2009 agreement, the project was scheduled for completion. By December 2014 and would provide Pakistan with a daily supply of 21.5 million cubic meters (760,000 million cubic feet) of gas. It was to be built in phases, with Iran having to install the pipeline on its side. Pakistan was meant to be the country where the pipeline was constructed.
Furthermore pakistan -Iran Gas Pipeline
Pakistan’s failure to complete its portion of the pipeline would require it to pay Iran $1 million every day starting on January 1, 2015. As per a penalty provision. Pakistan is likely to face billion-dollar fines should Iran pursue the issue in an arbitration court.
According to Saulat, Pakistan remained dedicated to carrying out the project. But only if Iran’s international restrictions were removed.
“We cannot take the chance of US sanctions by moving forward with the Pak-Iran Gas Pipeline because the US has made it very clear that anyone who does business with Iran will likewise face sanctions,” Saulat stated.
According to him, Iranian authorities believed that the IP was exempt from US sanctions. Gas project, stating that in order to find out precisely how such was the case, Pakistan had consequently issued Tehran a questionnaire Pak-Iran Gas Pipeline.
If Iran takes the matter to an international court, Saulat stated. “We might not have a weak case.” “We’re making an effort to manage it professionally.”
Read more: Pakistan Approves First Phase of Iran-Pakistan Gas Pipeline