Iran-Pakistan Pipeline

This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.

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Iran-Pakistan (IP) Gas Pipeline, also known as the Peace Pipeline, is an under construction pipeline which would deliver gas from Iran into Pakistan. This pipeline was formerly planned to extend to India and was called Iran-Pakistan-India (IPI) Gas Pipeline, however, after India withdrew, Iran and Pakistan went ahead with the plan.

Location

The project will deliver natural gas from Iran's South Pars field to Baluchistan and Sindh provinces in Pakistan.

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Project Details

• Operator: Ministry of Petroleum of Iran
• Owner: Ministry of Petroleum of Iran
• Parent company: Ministry of Petroleum of Iran
• Capacity: 750 million cubic feet per day
• Length: 2,775 km
• Diameter:
• Status: Construction
• Start year:
• Cost:
• Financing:
• Associated infrastructure:

Background

The Iran-Pakistan pipeline, also known as Peace Pipeline, emerged from a plan dating as far back as 1994 and had originally included India. The $7.5 billion, 1,700-mile project would bring gas from the South Pars Gas Fields through Baluchistan (in western Pakistan) into India. The project stalled multiple times. In 2008, a deal was nearly struck between the three countries until India decided to move towards an alternative pipeline project (TAPI). Sanctions on Iran coupled with pressure from the United States most likely influenced India's decision to leave the deal and move towards an alternative that excluded Iran.

After India pulled out of the plan for the original pipeline project, Iran and Pakistan remained in partnership and signed a deal in 2009 The pipeline's construction was planned to begin in 2012 and be completed by 2014. However, the project faced significant delays as as Pakistan failed to commit to the construction of its portion of the pipeline. U.S. sanctions on Iran in 2012 caused Pakistan to backtrack on the project. Additionally, in 2015, Pakistan agreed to import gas from Qatar, further weakening the possibility and economic necessity for Pakistan to complete the pipeline. In October 2018 the speaker of the Iranian parliament Ari Larijani blamed the ongoing threat of U.S. sanctions on Iran for the delay in building the pipeline.

From 2017 to 2019 there were no development updates to the project. Iran has since completed construction of its part of the pipeline . The construction of Pakistan's portion of the pipeline was inaugurated in March 2013, but was on halt ever since .

In September 2019, the Inter State Gas Systems (ISGS) of Pakistan and the National Iranian Gas Company (NIGC) drafted a new agreement for the construction of the pipeline. Under the new agreement, the countries would "mutually chalk out a practical solution for the completion of the project" and Pakistan would be expected to construct its part of the project by 2024.

Route

The Iranian section of the pipeline is 1,100km long. It starts from the Pars energy economic zone to Iranshahr and to Bushehr. It then passes through Fars, Kerman, Hormozghan and sistan – Baluchistan. The Pakistani portion of the pipeline will be approximately 780km long from Pakistan border to Nawabshah. About 665km of the section will run through Balochistan and 115km through Sindh.