Naseebullah khan
Iran-Pakistan gas pipeline which is know as peace pipeline is a natural gas pipeline project with an initial estimate of 7.5 billion USD. It earlier consisted of construction of 2700 KM at a time when India was the part of it. After the exclusion of India from it, the project is now comprised of 1931 KM in which 1150 KM will trverse in Iran while 781 KM in Pakistan. In total 781 KM of Pakistani area, 665 KM of it will be constructed in Balochistan while 115 KM will go to Sind. The route of this project will start from Iran,s South Paras gas fields of Iran and will end in Nawabshah in the province of Sind, Pakistan. As per the proposed agreement Pakistan will get 750 million cubic feet daily (MCFD) gas. It is expected that gas will be provided for 25 years. Expert estimate that it will be cheaper than other imported LPG while will be expensive than local gas produced in Pakistan.
This project has been in consideration since 1994. In 1995 Iran signed a preliminary agreement with Pakistan. In 1999 Iran suggested to extend this pipeline to India and hence signed another preliminary agreement by including India too. The project was therefore named as India-Pakistan-Iran (IPI) pipeline. Moreover,
in 2008, when India signed a nuclear deal with America it pulled out from the IPI on the pretext of price and security issues. After the exclusion of India from the project Pakistan and Iran signed the deal in March 2010. As per the agreement each country had to complete its section of pipeline before the end of 2014. According to that agreement if Pakistan did not complete its section pipeline by the end of 2014, it would have to pay 1 million dollar daily as penalty to Iran until its completion
In 2011 Iran completed its section. For Pakistan, this pipeline will have pivotal importance for overcoming its increasing energy demands which is increasing 2 to 3 percent annually where the local gas deposits in the state are shrinking. In addition, experts figure out thar it will cost 3 billion USD to Pakistan while it will reduce 5.3 billion USD Oil imports hence Pakistan will be in a position to save 2.3 billion USD.
Apart from this, it will ultimately meet Pakistan electricity crunch that has dwindled state economy. Pakistan quest for energy is a huge issue and impediment of its fragiled economy. As per the ministery of energy (petroleum and Gas) Pakistan gas consumption demand is 6 billion cubic feet per day (bcfd) while its production is 4 bcfd. This difference in demand and supply gap is due to depletion of gas, non exploration and production efforts, financial constrains, and losses in gas distribution system, while political instability, security concerns and policy inconsistencies have hindered investment in this sector. Experts opine that this project will help in reduce Pakistan, s energy quest once it is operationalized. For Iran, this project will have far-reaching implications on its economy which is already struggling owing to American and the UN sanctions. At the same time, this project will has long-lasting effects on mutual cooperation and relationship between Pakistan and Iran which could further enhance the trilateral relations among these two states with China who has already cemented relations with Pakistan and Iran both. This move can bring Iran close to becoming part of the CPEC. In addition, this pipeline will help Iran leverage in the region where Iran could enjoy advantageous situation geoecnomically and geopolitically
Recently an huge diplomatic tussle emerged between Pakistan and Iran. After not completion of the pipeline, Iran threatened Pakistan of 18 billion USD penalty. Recently, Pakistan has now started work on 80 KM pipeline with an estimated cost of Rs 45 billion. Therefore, Islamabad has been in a serious diplomatic turbulence. On one side, the US threatened Pakistan not to start this pipeline owing to its and the UN sanctions on Iran. While, on the flip side, Pakistan has been trying to waive American sanctions as Pakistani authorities assert that Japan and India are already buying Oil from Iran. Whilst China, and Russia have also trade relations with Iran. Whereas, American has also waived it sanctions on Turkey and Iraq with respect to their agreements with Iran. The US is opposing this project and threatens Pakistan of its consequences by imposing sanctions on Pakistan. It is against it so that to encounter Iran. It was that pressure when India pulled out from the project. While, during this bilateral geopolitical tention between America and Iran-Pakistan is suffering. Therefore, this situation demands Pakistan to take pragmatic diplomatic steps and initiate energy diplomacy to waive American sanctions and convince Americans over its energy needs and economic fragility. It should also tell America either to waive sanctions or provide ulternate of the IP project. Peace pipeline is a crucial gas project for Pakistan’s, energy crisis and economic fragility. At the same time, Pakistan has also been a close ally of America who has been against this project. On one side, Iran has threatened Pakistan with 18 billion dollar of penalty while on the flip side, America is opposing it owing to its tussle with Iran. There is a dire need for Pakistan to convince America to waive its sanctions or else provide an ulternate of the IP pipeline for Pakistan. It should tell America that peace pipeline is our compulsion not desire. At the same time, Pakistan should also persuade Iran to understand its compulsions over its relations with America and find out a solution of completing the project rather than threatening Pakistan of failing caee against Pakistan in international tribunals.
