Despite Pakistan approving the construction of a border pipeline to receive natural gas from Iran, the country's oil minister states that Islamabad is still worried about potential Western sanctions. Musad Masoud Malik told Reuters on Wednesday, June 13, that the country is seeking a solution to obtain cheap gas from Iran, but in a way that "does not lead to sanctions on Pakistan. Everything depends on legal interpretations." He added, "Our outlook is that we do not want to enter legal disputes and we do not want to be sanctioned." The Pakistani government finally approved the gas import pipeline project from Iran after nearly a decade of delay. In March 2023, the Pakistani cabinet approved the construction of an 80-kilometer pipeline from the Iranian border to the port of Gwadar to connect to the country’s national gas transmission pipeline. The two countries signed a gas contract in 2009, which stipulated that the Iran-Pakistan pipeline would be constructed by 2014, with Iran supplying 21 million cubic meters of gas daily starting in 2015, and Pakistan would be liable for a $1 million penalty for each day of delay. By 2015, Iran had built the gas transmission pipeline close to the Pakistan border, but Pakistan refrained from constructing the pipeline on its territory due to U.S. sanctions against Iran. The United States announced in April this year that it does not support the continuation of the Iran-Pakistan gas pipeline project and warned against trade with Tehran, which carries the risk of U.S. sanctions. A U.S. State Department spokesperson stated, "We always advise everyone that trade with Iran carries the risk of our sanctions, and we have asked everyone to be fully aware of the implications." The Pakistani oil minister had previously emphasized that his country is seeking a U.S. sanctions exemption. Musad Masoud Malik also told Reuters on Tuesday that Islamabad does not intend to purchase liquefied natural gas (LNG) until the beginning of winter, citing sufficient reserves and rising daily prices of the product. Pakistan is the second-largest LNG importer in South Asia and is facing a severe heatwave that has increased energy demand this summer.
Pakistan Remains Concerned About Western Sanctions on Iranian Gas Imports
Pakistan has approved a pipeline to import gas from Iran but remains concerned about potential Western sanctions. The oil minister emphasizes the need for a legal framework that avoids sanctions while seeking cheaper gas. This situation highlights the complexities of energy dependence amid geopolitical tensions.
👥 Key Players
📰 What Happened
Pakistan has approved the construction of a pipeline to import natural gas from Iran but is concerned about potential Western sanctions. The Pakistani oil minister is seeking a legal framework to avoid these sanctions.
- Pakistan approved the construction of an 80-kilometer pipeline from the Iranian border to Gwadar.
- The U.S. has warned against trade with Iran due to the risk of sanctions.
💡 Why It Matters
📚 Background
The Iran-Pakistan gas pipeline project has been delayed due to international sanctions and geopolitical tensions since its inception in 2009.
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