Iran-Pakistan Gas Pipeline at Issue
A planned visit to Tehran by Pakistani President Asif Ali Zardari to seal a $1.5 billion Iran-Pakistan (IP) gas pipeline deal was unexpectedly cancelled on Friday amid mounting U.S. objections to the contract. (Financial Times, 9 December)
Iran has offered Pakistan $500 million to finance the long-delayed gas pipeline.
“It’s a feasible project for Pakistan. It’s the quickest route, the cheapest route where we can fulfill our energy needs,” said Asim Hussain, chief natural resources advisor to Mr Zardari. “But we are (concerned) about the sanctions. (Banking) transactions with Iran is a problem.”
The U.S. is pushing an alternative gas route known as Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline.
File photo: IRNA