Iran Tracker

Iran and Pakistan signed a tariff and tax agreement in Turkey paving the way for the construction of the Iran-Pakistan Pipeline. Construction will begin immediately and the work should be completed by 2014. Under the terms of the deal, Iran will provide Pakistan 750 million cubic feet of gas per a day from its South Pars gas field for twenty-five years. The gas will be piped through Balochistan before reaching Pakistan's gas grid at Nawabshah. India declined to participate in the deal citing concerns about energy security. The agreement does not state how the two countries will finance the project, especially given U.S. sanctions against business activity in Iran’s energy sector. Russian energy giant, Gazprom, has reportedly met with Pakistani and Iranian officials. The project will cost an estimated $7.5 billion and involve the National Iranian Gas Company (NIGC) and Pakistan’s Sui Northern Gas Pipeline and Sui Southern Gas Company Limited (SNGPL, SSGCL). As of late March, with the signing of the contract between Iran and Pakistan, India has once again expressed interest in joining the project, and hopes to restart talks with Tehran soon. In addition to this, China has stated its willingness to invest $2.5 billion to extend the pipeline to its territory and replace India in the project.

• Amount (Current Dollar Value): $7.5 billion