Ahmadinejad vows to complete Pakistan gas pipeline by 2014

Published
0

Iran's President Mahmoud Ahmadinejad speaks during a media conference at Iran's embassy after he attended the Developing-8 summit in Islamabad on Thursday. – Photo by Reuters

ISLAMABAD: Iranian President Mahmoud Ahmadinejad Thursday vowed to complete a mutli-billion dollar gas pipeline to Pakistan on time, downplaying financial woes and US pressure on Islamabad to scrap the project.

Pakistan and Iran signed a deal in 2010 under which Tehran would supply gas to its eastern neighbour from 2014, with sales to reach up to one billion cubic feet (28 million cubic metres) per day by mid-2015.

The project envisaged a pipeline, 900 kilometres (560 miles) in length built from Assaluyeh in southern Iran to the border with Pakistan.

Another 800 kilometres pipeline was also needed inside Pakistan to receive gas from Iran's South Pars field in the Gulf.

“We want to complete this project by 2014,” Ahmadinejad told a press conference in Islamabad.

“The portion of pipeline on Iranian side is about to be completed swiftly, while on Pakistan side the work will be completed soon,” he said, adding that Iran was also extending “financial assistance” to Pakistan for this purpose.

He said Iran was also providing electricity to Pakistan and the two countries have signed agreements for up to 1000 megawatts of electricity supply.

Ahmadinejad also brushed off US pressure on the gas supply project to Pakistan.

“America cannot affect this project....God willing this project will be completed soon and gas will reach Pakistan.” The plans to complete the pipeline in Pakistan have run into difficulty over reluctance by investors who fear they could be hit by sanctions.

Pakistan insists the pipeline is vital to efforts in overcoming the energy crisis it faces, but the United States has expressed strong objections to the project.

It is urging Islamabad to abandon it because of sanctions against Iran over its controversial nuclear programme.

Pakistan, which produces just 80 per cent of its own electricity needs, sees the $7.5 billion gas project as a partial answer to the crisis which has led to blackouts and has suffocated industry.

Iran, which has the world's second-largest gas reserves, is rapidly developing its production but can only export a small part of it due to lack of pipelines or liquefaction infrastructure.

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Real FBR reform
21 Oct, 2026

Real FBR reform

REFORM of the FBR has always been easier to promise than to deliver. Since the late 1990s, governments have tried...
Missing lawmakers
Updated 21 Oct, 2026

Missing lawmakers

Some lawmakers have reportedly been in detention since before Oct 11.
Tackling rabies
21 Oct, 2026

Tackling rabies

RABIES is a deadly but preventable zoonotic disease. On Monday, two more victims succumbed to it in Sindh, taking ...
Burnt bridges
Updated 20 Oct, 2026

Burnt bridges

If PPP wants the decision reversed, it should convince its ally in Islamabad, not ask the opposition to be ‘positive’.
Toll on trade
Updated 20 Oct, 2026

Toll on trade

Islamabad must find the right balance between its security priorities and the economic strain on KP’s residents.
French protests
20 Oct, 2026

French protests

SEVERAL European states have witnessed mass protests over the past few days, mostly focusing on socioeconomic...