Iran-Pakistan Pipeline
The Iran-Pakistan gas pipeline is an energy project designed to deliver natural gas from southern Iran to the Pakistani border. Iran and Pakistan signed the initial agreement in 1995. Iran completed its section of the pipeline in 2011. Pakistan has not built its section. The United States opposes the project and threatens to impose economic sanctions on Pakistan if it buys Iranian gas. Pakistan faces a severe energy shortage and needs the gas, but it also relies on Western financial support.
Core Context Pillars
Pillar 1
Iran finished its 900-kilometer section of the pipeline in 2011, spending over two billion dollars.
Pillar 2
Pakistan delayed construction on its 781-kilometer section due to the threat of United States sanctions.
Pillar 3
Under the contract, Pakistan faces a penalty of 18 million dollars per day if it fails to complete the pipeline by March 2024.
Pillar 4
In February 2024, the government of Pakistan approved the construction of a short 80-kilometer section to avoid the Iranian penalty.