Iran may cancel $7B pipeline project with Pakistan

Iran has said it may cancel its high-profile, US$7-billion ‘peace pipeline’ project with Pakistan over lengthy construction delays, which would deprive energy-starved Pakistan of the some 22 million cubic meters of gas a day it would have received from its neighbor, OilPrice.com reported.

If negotiations fail to come up with a way to feasibly realize the project, Iran’s National Gas Company Head Hamid Reza Araqi said that the project could be cancelled entirely.

The project has already undergone 15 years of negotiations, beginning as the Iran-Pakistan-India gas pipeline project. Pakistan and Iran finally signed the initial agreement in 2009, while India withdrew from the deal.