Pakistan government began work on the $7.5 billion Iran-Pakistan gas pipeline project which would pass through Pakistan’s restive Baluchistan province.
It is learnt that the Iranian government almost completed work on its side. Now, the Pakistani government has to lay a total of 780 km of pipeline by December 2014. Tehran has agreed to lend Islamabad $500 million, a third of the estimated $1.5 billion cost of the Pakistani section of the pipeline. The total cost of the entire project is pegged at $7.5 billion.
The inauguration ceremony of gas pipeline which will pass through Pakistan’s restive Baluchistan province was held in the Iranian border city of Chabahar recently.
The completion of the pipeline is in the interests of peace, security and progress of the two countries … it will also consolidate the economic, political and security ties of the two nations, a joint statement by Iran and Pakistan said.
Work on the new section of the pipeline is going ahead despite US sanctions against Iran’s oil and gas sector. The project prompted several warnings of sanctions from the US. Washington says the pipeline would enable Tehran to sell more gas, undermining efforts to step up pressure over its nuclear activities.
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