During talks with Iran’s Ambassador to Islamabad Alireza Haqiqian, new Pakistani Petroleum Minister Shahid Khaqan Abbasi said, “We hope to continue and complete the project within the stipulated time,” the English-language The Express Tribune reported on Wednesday.
As per the deal, Islamabad will have to pay a penalty of eight million dollars per day if it delays the construction of the pipeline.
Iran-Pakistan (IP) gas pipeline, also known as the Peace Pipeline, will enable the export of 21.5 million cubic meters per day of Iranian natural gas to Pakistan.
Abbasi further described the IP gas pipeline project as a significant milestone, adding that Islamabad is working to resolve the issues and details facing the project.
For his part, Haqiqian praised Pakistan’s general elections held last month, and the peaceful transition of power to the new administration, underlining the new venture for the import of natural gas from the Islamic Republic under the IP pipeline project.
The two sides also stressed the need to expand historical relations between the two neighboring countries.
The IP pipeline is designed to help Pakistan to overcome its growing energy needs at a time when the country of over 180 million people is grappling with serious energy shortages.
Iran has already built 900 kilometers of the pipeline on its soil and it has offered to finance and help build the 700-kilometer tranche of the pipeline on the Pakistani side.