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Pakistan is forging ahead with plans to construct a pipeline to transport natural gas from Iran, a move aimed at addressing the country’s energy needs but likely to draw attention from its western allies.
The Cabinet Committee on Energy has greenlit the commencement of construction for an 80-kilometer (40-mile) segment of the 800-kilometer pipeline, stretching from the Iranian border to Pakistan’s strategic port city of Gwadar. The project will be funded by the government.
For years, Pakistan hesitated to proceed with the pipeline due to investor reluctance stemming from United Nations sanctions against Iran and restrictions on dollar transactions. However, with its domestic resources depleting rapidly, Pakistan views the pipeline as crucial to meeting its energy demands.
Despite historically close ties with both the US and Iran, Pakistan’s decision to move forward with the pipeline could strain its relationships with its western allies. The project also carries legal implications, as a 25-year gas deal signed between Pakistan and Iran in 2013 has been met with threats of legal battles in international courts.
Currently, imported liquefied natural gas accounts for 29% of Pakistan’s total supply, underscoring the nation’s pressing need for additional gas sources to sustain its industrial sector.
Pakistan’s determination to pursue the Iran gas pipeline reflects its strategic imperative to secure reliable energy resources amid escalating domestic demand and dwindling reserves. However, the project is likely to attract scrutiny from international stakeholders wary of Iran’s geopolitical dynamics and ongoing sanctions.
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