IP Pipeline May be Delayed Due to Political Transition in Pakistan

The Iran-Pakistan gas pipeline project may not be completed by the deadline of December 2014 because of the political transition in Pakistan. 

The project was delayed because important approvals for beginning construction of the pipeline could not be obtained from the caretaker government, Petroleum Secretary Abid Saeed said, Press Trust of India reported. 

Work on the project inside Pakistan has been suspended because of the polls and transfer of power, he said. 

The Pakistan government needs to issue a sovereign guarantee to Iran’s Tadbir Energy, the engineering and construction contractor, and this has been delayed till the new elected government takes over, PTI quoted Saeed as saying. Once the sovereign guarantee is issued, Tadbir Energy will begin project mobilisation. 

The pipline is expected to cost $1.8 billion and will carry 750 million cubic feet of natural gas a day to Pakistan for 25 years.