TEHRAN: Iran’s Deputy Oil Minister Ali Majedi said yesterday that Pakistan must finance a controversial pipeline that would enable it to buy gas from Tehran.
Majedi’s remarks come after Pakistan’s Oil Minister Shahid Khaqan Abbasi asked Iran to stump up $2bn to finish construction of the pipeline.
The $7.5bn project launched in 2010 has drawn threats of US sanctions and run into problems, including finance. “We did not make such a commitment to help Pakistan with $2bn for construction of the pipeline,” Majedi said, quoted by Fars news agency.
He argued that based on initial agreements each side “must bring its own share” in financing the project, adding the “Pakistanis need Iran’s gas and they should accelerate their work.” Work on the Iranian side of the pipeline is almost complete, but Pakistan has run into problems financing the 780km section to be built on its side. Investors and government agencies are reluctant to get involved in the project because of the threat of breaching international sanctions against Iran.
Once completed, the project which aims at easing Pakistan’s gas and electricity shortages would allow Iran to export 21m cubic metres of gas per day.
Iranian Oil Minister Bijan Zangeneh said last week he had “no hope” for the deal with Pakistan because of financial problems. His comments prompted Pakistan to insist the project would be completed and there was “no chance to abandon it, because we need it”.AFP
