Iran hails Pakistan's political determination to complete gas pipeline project

• Iran's diplomat says international pressure is causing delays.
•  Adds Iranian president's tour of Pakistan significant step. 
• "Pak-Iran gas pipeline project holds the great importance."

KARACHI: Iran has hailed Pakistan's political determination to complete the gas pipeline project between the two countries, which has been facing delays. 

Iran's Consul General to Pakistan Hassan Nourian on Monday said that Tehran and Islamabad "are looking at ways to complete the project but international pressure is causing delays".

The comments came during a “Meet the Press” session at the Karachi Press Club, where the Iranian official interacted with journalists. 

He said that the Iran-Pakistan gas pipeline "project holds great importance".

"We see political determination from Pakistan to complete the project," he added.

The two countries signed the agreement to construct the pipeline from Iran's South Fars gas field to Pakistan's Balochistan and Sindh provinces in 2010, but work on Pakistan's portion has been held up due to fears of US sanctions.

Nourian further said that the recent visit of Iranian President Ibrahim Raisi to Pakistan was a significant step in bilateral relations between the two countries. 

On the visit, he said, the two sides had discussed expediting bilateral trade through Gwadar and Chah Bahar ports, prisoner exchange and other economic and political affairs. 

Both the countries agreed to control terrorism and security cooperation as well, he added.

Earlier, Defence Minister Khawaja Asif had expressed confidence in completion of the Iran-Pakistan gas pipeline project, saying that the obstacles in its way will be removed.

“Pakistan is in a position to complete [gas] pipeline project with Iran, and makes decision regarding it.

“We are constructing gas pipeline on our side from Gwadar to the Iranian border,” Asif said while speaking on Geo News' Capital Talk programme ahead of Raisi's visit last month. 

The 1,900 kilometre (1,180 mile) pipeline was meant to supply 750 million to one billion cubic feet per day of natural gas for 25 years to meet Pakistan's rising energy needs.

Tehran says it has invested $2 billion to construct the pipeline on its territory. Pakistan, however, did not begin construction, citing international sanctions on Iran as the reason.

In 2014, Islamabad asked for a 10-year extension to build the pipeline, which expires in September this year. Iran can take Pakistan to international court, industry watchers have said.

Faced with potential legal action, Pakistan's caretaker administration this year gave the go ahead in principal to commence plans to build an 80km segment of the pipeline.

In March, Islamabad said it would seek a US sanctions waiver for the pipeline. The US, however, said it did not support the project and cautioned about the risk of sanctions in doing business with Tehran.

Pakistan, whose domestic and industrial users rely on natural gas for heating and energy needs, is in dire need for cheap gas with its own reserves dwindling fast and LNG deals making supplies expensive amidst high inflation.

Iran has the world's second-largest gas reserves after Russia, according to BP's Statistical Review of World Energy, but sanctions by the West, political turmoil and construction delays have slowed its development as an exporter.

— Additional input from Reuters.