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March 29, 2024
US Doesn't Support Iran-Pakistan Gas Pipeline Project
Washington, DC: The United States said on Tuesday that it does not support a Pakistan-Iran gas pipeline project from going forward and cautioned about the risk of sanctions in doing business with Tehran.
The Pakistan-Iran gas pipeline, known as the Peace Pipeline, opens a new tab, is a long-term project between Tehran and Islamabad, and has faced delays and funding challenges for several years. The pipeline would transport natural gas from Iran to neighboring Pakistan.
Iran and Pakistan had signed a five-year trade plan in August 2023 and set a bilateral trade target at $5 billion.
Petroleum Minister Musadik Malik said this week that his country was seeking a US sanctions waiver for the gas pipeline from Iran.
"We cannot bear American sanctions. We will present our stance to the US," Malik said. "Iran has been told multiple times that we need their gas. We want to complete this project but without any sanctions."
The caretaker government opted to construct a portion of the 80-kilometre pipeline within its territory to pre-empt potential legal disputes with Iran in international courts.
Pakistan feared facing an $80 billion penalty if it lost the case in the international court, hence the decision to proceed with its portion of the pipeline while concurrently seeking a US waiver on sanctions related to the IP gas pipeline project.
"We always advise everyone that doing business with Iran runs the risk of touching upon and coming in contact with our sanctions, and would advise everyone to consider that very carefully," a US State Department spokesperson told reporters in a press briefing.
"We do not support this pipeline going forward," the spokesperson added, saying that Donald Lu, the State Department's top official for South and Central Asia, had said as much to a congressional panel last week. - Reuters
Courtesy Reuters
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