Pakistan suspends construction of gas pipeline with Iran “due to force majeure”

The Pakistani Government has informed Iran that it is suspending its contractual obligation to complete the joint construction of a gas pipeline project due to force majeure circumstances, the Pakistani newspaper Dawn reports on August 7.

“Pakistan has issued a force majeure and explanatory event notice to Iran under the Gas Sale and Purchase Agreement (GSPA), which consequently suspends Pakistan’s obligations under the GSPA,” the newspaper quotes the minister of state for Oil, Musadik Malik, who spoke this Monday before the National Assembly, the lower house of the Pakistani Parliament.
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Leaders of Iran and Pakistan meet for the first time in 10 years

The minister explained that “the Iran-Pakistan gas pipeline project is stalled due to international sanctions against Iran,” adding that construction will restart once restrictions against the Islamic Republic are removed. “Taking this into account, no date or deadline can be given for the completion of the Iran-Pakistan gas pipeline project,” he said.

On the other hand, Malik has admitted that Tehran does not agree with Islamabad’s decision, so the dispute over its validity could only be resolved through international arbitration, if Iran decides to resort to this measure. The statement by Pakistani authorities comes shortly after Iranian Foreign Minister Hossein Amir Abdollahian’s visit to Islamabad last week. The Iranian foreign minister then emphasized the need to complete the gas pipeline project, as it would benefit both countries.

US Role

In his latest statement, the Pakistani Oil Minister explained that the Government of Pakistan could not begin the construction of the gas pipeline due to US sanctions on Iran.

“The Government of Pakistan is committed to the US authorities, through diplomatic channels, to seek an exemption for the project,” he assured. Islamabad asked Washington earlier this year to allow construction of the project to help overcome power shortages in the country, but has yet to receive any response from the US.

In 2009, the Pakistani state-owned company Interstate Gas Systems and the Iranian company The National Iranian Gas Company signed an agreement to build a gas pipeline that would release Iranian gas and alleviate energy shortages in Pakistan. However, the US showed its open opposition to the project, as it could undermine its pressure efforts on Tehran, in addition to its geopolitical interests in the region.

As a result, Tehran completed its portion of the 1,150-kilometer gas pipeline in March 2013, at an estimated cost of $7.5 billion, but Islamabad, which had committed to building its 800-kilometer section of the pipeline by January 2015, has not yet completed the project. the project has finished. With RT

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