The goal of creating a natural gas pipeline between the two nations of Iran and Pakistan has been in the works for more than two decades. However, the countries may be getting closer to an agreement on finishing the project. According to UPI, problems with the pipeline originated from Pakistan's lack of funding as well as other international attempts to stop the project.
In an effort to complete the project, Iran offered Islamabad a $500 million loan to finance Pakistan's part of the pipeline in order to provide energy for power generation, the article stated.
The Iran-Pakistan pipeline is expected to cost as much as $1.5 billion and enable the transfer of 21.5 million cubic meters of Iranian natural gas into Pakistan on a daily basis, the Tehran Times reported. More than 550 miles of the pipeline has already been constructed in Iran. Iranian Deputy Oil Minister Javad Owji added that Tehran would finance and help build the 435 miles of pipeline needed in Pakistan.
“Aside from a 250-million-dollar loan, Iran will also provide the supplies and equipment necessary for the construction of the part of the pipeline on Pakistani soil,” he said.
The Tehran Times also reported the Pakistani Federal Cabinet awarded the contract for the Iran-Pakistan gas pipeline to an Iranian company with a project completion date of 2015.