Pakistan eyes Tehran-Washington agreement to revive peace gas pipeline

According to Energy Press, in late summer last year, high-ranking Pakistani officials announced that Iran had given Pakistan its final warning that Tehran had no choice but to file a complaint with the Paris Arbitration Court against Pakistan for failing to build and complete the Iranian gas import pipeline by September of this year, which Iran may have still given Pakistan time.
The project, which was supposed to be implemented in 2014, has been delayed by 10 years due to US sanctions against Iran. The 25-year contract for Pakistan to buy gas from Iran through the pipeline was signed in 2009 under French law, and the Paris-based arbitration court has been designated as the venue for arbitration and decision-making on disputes between the two countries. The French arbitration court does not recognize US sanctions. Pakistan has also pledged to complete its pipeline by 2024 and receive 750 million cubic feet of gas per day from Iran after that.
According to this project, the two countries were supposed to build their pipeline to the zero point of the border, which Iran completed years ago and according to the contract to build its pipeline to the zero point of the border with Pakistan, but Pakistan refused to do so under various pretexts, including US sanctions. According to the original contract, the project was supposed to be completed by December 2014 and be put into operation on January 1, 2015.
Washington’s Betrayal of Islamabad
The construction of the Iran-Pakistan gas pipeline, which experts present as a boon for Pakistan’s energy security, faces potential obstacles due to US sanctions. The US State Department has clearly stated its opposition to the project and has warned Pakistan of the risk of imposing sanctions if construction continues. This is indicative of the complex interaction between regional energy needs and the geopolitical landscape.
Former US Secretary of State Henry Kissinger once said, “Being an enemy of America may be dangerous, but being a friend of America is deadly,” and the US has proven him right, at least in the case of Pakistan’s gas imports, and has repeatedly shown itself to be an unreliable ally in global affairs.
Last year, Pakistan’s oil minister announced that the country was pursuing a waiver from US sanctions for its Iran gas pipeline. This parallels the waivers granted to India for trade with Russia and Iran despite ongoing US sanctions. At the same time, some Pakistani political figures have leveled accusations against Washington of interfering in the country’s domestic political affairs, a claim the US government denies.
The Pakistan-Iran gas pipeline project, often referred to as the “Peace Pipeline,” is an example of the complexities inherent in international energy partnerships. Despite being an ally of the US, Pakistan faces significant challenges in making this long-term project with Iran a reality. The pipeline, which is intended to transport natural gas from Iran to Pakistan, has been plagued by delays and financial constraints for years.
While Iran has completed its portion of the project with a 900-kilometer pipeline, progress on the Pakistani side has remained stalled. However, remarks by a Pakistani minister in February 2024 suggest a potential turnaround.
The Iran-Pakistan gas pipeline project, beyond addressing Pakistan’s immediate energy needs, is expected to act as a catalyst for economic activity, particularly in Balochistan province. Natural gas exports are expected to boost investor confidence in local industries and potentially lead to economic development in the region. In addition, the project’s geographical proximity and shared border with Iran make it a convenient option for gas transportation.