The Pakistan Ministry of Energy has announced it’s approval to restart a joint project to run a pipeline with Iran after the construction agreement was postponed for 10 years.
The pipeline is designed to be 781 kilometers long and will run from the Iranian border to the Pakistani port city of Gwadar. It is expected to move 750 million to 1 billion cubic feet of oil/natural gas per day. Pakistan’s side of the project has a deadline in September 2024, with only the first phase being approved by Pakistan’s Ministry of Energy so far.
The original plan was agreed upon in 2014; however, due to international pressure from the West in light of sanctions placed on Iran, Pakistan was forced to postpone the agreement.
The pipeline is estimated to generate $20 billion USD per year for Iran while helping significantly improve Pakistan’s energy infrastructure.
