Iran asked to allay fears over pipeline

“We cannot move ahead with the projec­t unless the issue of possib­le US sancti­ons is resolv­ed,” says an FO... By Zafar Bhutta Published: December 11, 2013 Pakistan and Iran decided to speed up implementation of the project and to formulate a roadmap to address the challenges and resolved to have effective coordination and cooperation. PHOTO: AFP/FILE ISLAMABAD: Pakistan has asked Iran to resolve the issue of possible US sanctions that have delayed the multibillion dollar gas pipeline project and created hurdles in generating funds for it. A senior Foreign Office official said that a Pakistani delegation, in its visit to Tehran, expressed reservations over possible sanctions on the project due to tensions between Iran and the US. According to a press release from the Foreign Office, the Pakistani side – including Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi, Petroleum Secretary Abid Saeed and Pakistan’s Interstate State Gas System Managing Director Mobin Saulat – met with Iran’s Minister of Petroleum Bijan Namdar Zangeneh at the Ministry of Petroleum in Tehran on Monday. “We cannot move ahead with the project unless the issue of possible US sanctions is resolved,” the FO official familiar with the development said. He added that Tehran expressed reservations over a delay in implementation of the project but the Pakistani side told Iranian authorities that the delay was not caused by Pakistan. “The delay in implementation of the project is due to possible sanctions by the US on the project and therefore Tehran should first resolve this issue,” the official said. According to the FO statement, Pakistan and Iran decided to speed up implementation of the project and to formulate a roadmap to address the challenges and resolved to have effective coordination and cooperation. It was also agreed that a meeting would be held shortly between the experts from both sides to review parameters for accelerating work on the project, the statement said. “The experts will also discuss finding a way to avoid possible US sanctions to implement the project,” the official said, adding that experts would also mull over a plan of extending deadline of the project commissioning to give a waiver to Pakistan and reducing the gas price and construction contract price by Iranian firm Tadbir. He said Pakistan had requested Iran to support the entire financing of the project amounting to $2 billion and this issue would also be discussed during experts’ meeting. Published in The Express Tribune, December 11th, 2013.