Project Focus: Iran-Pakistan-India Gas Pipeline
Iran-Pakistan-India (IPI), 2700 km, pipeline is aimed to transfer gas from Iran's South Pars fields in the Persian Gulf to Pakistan's major cities of Karachi and Multan and then further to Delhi, India, with an estimated value of USD 7 billion.
Iran-Pakistan-India Gas Pipeline (IPI)
| Location | Iran-Pakistan-India - IR |
| Investment | 1,500,000,000 USD |
| Announced | 2/15/2002 |
| Completion | 12/15/2018 |
| Scope | Iran-Pakistan-India (IPI) pipeline project (also called Peace Pipeline) was aimed at constructing a 1,620-mile (2700 km) pipeline from Iran's South Pars fields in the Persian Gulf to Pakistan's major cities of Karachi and Multan and then further to Delhi, India. Because of Iran is the most geographically convenient supplier of gas to both countries; Iran is offering to cover 60% of the construction costs of the pipeline. The total length of 2700 km project would run 1100 km in Iran and 1000 km to Pakistan and in case of agreement with India it will continue 600 km in Indian Territory. This project is expected to greatly benefit India and Pakistan, which do not have sufficient natural gas to meet their rapidly increasing domestic demand for energy. A land-based pipeline would be four times cheaper than any other option, even after taking into account transit fee payments to Pakistan. Pakistan could earn about $200-$500 million annually in transit fees from the pipeline and also would be able to purchase natural gas from the pipeline. The pipeline can carry 110 million cubic meters of gas a day. 50Mln cm meets domestic needs of Iran and the remaining 60Mln cm will go to Pakistan. Iran will initially transfer 30 million cubic meters of gas per day to Pakistan, but will eventually increase the gas transfer to 60 million cubic meters per day. |
Development Milestones
| 2/21/2009 | Iran has increased the price of natural gas it plans to sell to India through Iran-Pakistan-India pipeline to USD 7.2 per mBtu, which makes it the most expensive fuel in the country as of date. Besides, India would have to pay USD 1.1-1.2 per mBtu in transportation cost and transit fee for wheeling the gas through Pakistan, making it the costliest gas in the country, so India had lost interest in the project because it considered that the price proposed by Iran was too high. |
| 3/21/2009 | Economic Coordination Committee (ECC) of the cabinet approved a rationalised gas import price equivalent to 80 percent of the international crude oil price, removing the final obstacle in the $7.8 billion gas pipeline project with Iran. |
| 4/9/2009 | Pakistan Federal Cabinet accorded approval to the construction of Pakistan-Iran gas pipeline and gave the go ahead for purchase of 750 million cubic feet gas from Iran to fulfill the growing local requirements. |
| 5/25/2009 | Iran and Pakistan signed an initial agreement for a USD 7.5bn Iran-Pakistan-India gas pipeline. |
| 6/5/2009 | Iran-Pakistan gas pipeline project has been formally signed in Istanbul. The agreement was signed between National Iranian Gas Export Company (NIGEC) and Pakistani Interstate Gas Company (PIGC). |
| 8/11/2009 | 900 km out of 1100 km in Iran has been constructed, with a cost of $700 m. |
| 1/23/2010 | Iran and Pakistan have resolved all issues concerning the long pending IPI pipeline and both the countries are likely to sign a deal soon. |
| 3/17/2010 | Iran and Pakistan have signed a deal paving the way for construction to start on the IPI gas pipeline. Under the terms of the deal, Iran will supply 750 million cubic feet a day of gas to Pakistan for 25 years. |
| 3/30/2010 | China has expressed its keen interest to invest of $2.5 billion in Iran - Pakistan Gas pipeline, it is interested to extend the Gas Pipeline Project into its area. |
| 3/31/2010 | India proposed dialogue with Iran to discuss impediments in implementation of the Iran-Pakistan-India (IPI) gas pipeline. India has been boycotting formal talks on the project since 2007 over security concerns. |
| 4/11/2010 | Designing and construction of remaining part of the Iranian sector of Peace Pipeline will start as of May 2010. The 900 km, 42 inch diameter (IP) gas pipeline will run from the Assaluyen gas field in southern Iran to Pakistan. Requiring a total investment of $US 3.2 billion, the IP pipeline will have a capacity of 750 MMcm/a. |
| 5/16/2010 | India has invited Iran for resumption of dialogue on the long discussed IPI project but Tehran is yet to respond. India has proposed a meeting of India-Iran Joint Working Group between May 23-28 in New Delhi but Tehran has not yet confirmed the dates. |
| 5/28/2010 | Iran and Pakistan signed a "sovereign guarantee" agreement paving the way for the completion of Iran-Pakistan Gas Pipeline. The groundwork of the project would start soon, as the paper work had been completed. |
| 6/13/2010 | Iran and Pakistan formally signed a deal, which commits the Islamic republic to supplying its eastern neighbor Pakistan with natural gas from 2014. |
| 10/25/2010 | The Pakistan government has awarded a $55 million feasibility study contract to ILF, of Germany, for the $2.5 billion Iran-Pakistan (IP) gas pipeline project with the condition that the consultant will complete its job in only 12 months, against original plan of 18 months. |
| 11/13/2010 | The bidding for Pakistan’s part of Iran-Pakistan Gas Pipeline Project would commence shortly, |
| 3/13/2011 | Pakistan seeks assistance from China to carry out Iran-Pakistan (IP) gas pipeline project to import gas from Iran. |
| 7/5/2011 | Work on Iran-Pakistan gas pipeline is expected to start in six months. |
| 8/10/2011 | A feasibility report is being prepared for Iran-Pakistan gas pipeline by NESPAK. |
| 8/17/2011 | Pakistan plans to borrow $300 million from local banks to build Pakistani side of the Iran-Pakistan gas pipeline. |
| 8/29/2011 | Chinese companies will help Pakistan to complete Iran-Pakistan gas pipeline project. |
| 11/2/2011 | A consortium of banks has been formed to finance the Iran-Pakistan gas pipeline project. |
| 11/26/2011 | The government of Pakistan's Balochistan Province has agreed to give land for Iran-Pakistan Gas Pipeline project. |
| 2/4/2012 | Pakistan will complete IP Project instead of sanctions imposed against Iran. |
| 2/20/2012 | Russia has asked Pakistan to award a $1.2 billion pipeline-laying contract of Iran-Pakistan-India Gas Pipeline to its energy giant Gazprom without going into bidding process. |
| 3/5/2012 | Pakistan has awarded the $250 million contract for laying of Iran-Pakistan (IP) gas pipeline in its territory to ILF Engineering German company. |
| 3/10/2012 | The second phase of lying Iran-Pakistan gas pipeline has been started. |
| 4/7/2012 | Russia has come forward to bail out Pakistan to complete the much-touted Iran-Pakistan gas pipeline and has agreed to fully provide both technical and financial help. |
| 4/28/2012 | Inter State Gas Systems, an auxiliary organization of Pakistan Petroleum and Natural Resources Ministry, issued pre-qualification of engineering, procurement, construction and commissioning tender for IP pipeline as Iran offered $500 million to Pakistan to build its part of the pipeline. |
| 5/12/2012 | Pakistani Inter State Gas Systems invited contractors to pre-qualify for the engineering, procurement, construction, and commissioning contract of a 785 km, 42 inch diameter gas pipeline from Iran to Pakistan. |
| 7/21/2012 | Pakistan and Iran have committed to press ahead with the gas pipeline project and constituted a joint working committee to finalize a deal for laying Pakistan's portion of the pipeline by Iran. |
| 8/23/2012 | Pakistan planned gas pipeline will reach border point in first half of next Iranian calendar year beginning 20 March 2013. |
| 11/26/2012 | Iran-Pakistan gas pipeline will be completed on schedule in 2014 despite the U.S pressures to head off the project. |
| 1/13/2013 | Iran has designated a 'clean' private company, which has not been placed under US sanctions, to take a direct contract for laying a pipeline in Pakistan under the Iran-Pakistan gas supply project for which Tehran is extending a $500 million loan. |
| 2/2/2013 | Pakistan has awarded Iran's Tadbir Energy Company a contract to build Pakistan part of Iran-Pakistan gas pipeline. |
| 3/2/2013 | The IP pipeline is expected to be constructed in 22 months. |
| 3/13/2013 | Iranian President Ahmadinejad and his Pakistani counterpart Asif Zardari have officially inaugurated the final construction phase of Iran-Pakistan gas pipeline. |
| 4/2/2013 | Pakistan may face economic sanctions over the IP pipeline project with Iran. |
| 4/10/2013 | Iran will provide $500 million under a state-to-state arrangement for constructing of the IP Pipeline. |
| 5/29/2013 | Iran-Pakistan Pipeline has been delayed due to political transition in the country and now it cannot be completed by the contractual deadline of Dec 31, 2014. |
| 8/20/2013 | New Pakistan government will complete IP pipeline. |
| 10/8/2013 | Pakistan asked Iran to construct the Pakistani side of the Iran-Pakistan gas pipeline. |
| 12/16/2013 | Iran has suspended a USD 250 million loan to Pakistan to build part of IP Gas Pipeline. |
| 1/11/2014 | Pakistan would ask Iran to set a new timeframe for completion of Iran-Pakistan (IP) gas pipeline project. |
| 5/12/2014 | Iran urges Pakistan to fulfill its commitments regarding a multi-billion-dollar gas pipeline projected to carry natural gas from Iran to its eastern neighbor. |
| 5/27/2014 | Iran has no obligation to provide two billion dollars in aid for the construction of gas pipeline to Pakistan. |
| 7/22/2014 | The Iran-Pakistan (IP) gas pipeline not to be operational before 2018. |
| 9/23/2014 | Iranian Foreign Minister and his Pakistani counterpart in a meeting in New York underlined the need for finalizing Iran-Pakistan gas pipeline. |
| 12/30/2014 | The project date of Pak-Iran (IP) gas pipeline project had been extended with the consultation of Iran. |
| 1/10/2015 | Oil Minister dismissed claims that Iran has agreed to revoke penalty against Pakistan for its delays in completing the Iran-Pakistan (IP) gas pipeline project, and the new agreements on Iran-Pakistan gas pipeline are not correct. |
| 2/22/2015 | Iran has never discussed charging Pakistan penalties for delayed gas pipeline. In its talks with Pakistan for gas exports to this country, Iran never entered the issue of penalties. Iran safeguards its rights in its talks with Pakistan for gas exports to its eastern neighbor. |
| 2/28/2015 | Pakistan has not abandoned the Iran-Pakistan gas pipeline project and the country will pursue it once international sanctions are removed that is hindering the plan. |
| 4/14/2015 | Iran-Pakistan Pipeline project will go ahead as planned. |
| 5/18/2015 | Pakistan’s United International Group Mian Shahid think that gas import from Iran is going to become a reality twenty years after Pakistan and Iran signed pipeline deal. The project has important political and economic dimensions for the two neighboring countries but US has remained the biggest obstacle forcing Pakistan to get gas from Turkmenistan. |
| 9/5/2015 | Tehran has urged Bangladesh to join the Iran-Pakistan gas pipeline, expressing readiness to study prospects of extending the project to the South Asian nation. The Iran-Pakistan-India gas line could be extended to Bangladesh. Bangladesh government must have a feasibility study on the pipeline. |
| 1/14/2016 | Pakistan is ready to complete the short final pipeline spur that would enable it to import natural gas from Iran once sanctions are lifted in February 2016. The delegations from the two countries are expected to meet soon. |
| 1/26/2016 | The gas pipeline project to take Iranian natural gas to neighboring Pakistan will become operational provided that banking and executive restrictions are smoothed out. Pakistan will be able to complete its share of the IP pipeline within an 18-month period. |
| 3/27/2016 | Iran urges Pakistan to expedite gas pipeline construction. Iran has laid the pipeline up to the border to export gas to neighboring Pakistan encouraging the government in Islamabad to speed up measures to complete its share on its soil. |
| 5/24/2016 | Pakistan was committed to the Iran-Pakistan (IP) gas pipeline project but it was still facing sanctions. Dollar transactions have not been allowed and investors are not willing to finance due to the 'snap back' clause, which may lead to imposition of sanctions again on the project. The IP gas pipeline needed an investment of $2 billion, but investors were hesitant to invest. |
| 6/12/2016 | The Pakistani minister for petroleum and natural resources has reportedly that a long-awaited gas pipeline project between Iran and Pakistan will complete by 2018. The pipeline had already been completed on the Iranian side with a total investment of above $2 billion, while Pakistan has fallen behind the target to take delivery of gas. |
| 6/26/2016 | Pakistan has finalized a contract with China on laying a gas pipeline from Gwadar Port, 80 kilometers from Iran borders, to the Pakistani city of Nawabshah. |
| 7/2/2016 | Pakistan has decided to re-negotiate the gas deal inked with Iran under IP gas pipeline project. |
| 8/9/2016 | The technical-economic studies over Iran-India sub-sea gas exports pipeline project are ongoing. |
| 11/7/2016 | Iran and Pakistan are in contact with each other to complete the Pakistan-Iran (IP) gas pipeline project. |
| 12/19/2016 | Pakistan government is to discuss some details on Iran-Pakistan (IP) gas pipeline project. The implementation is to be done on the basis of a segmented approach whereby each country will be responsible for construction of pipeline in the respective territory. |
| 1/29/2017 | Iran may cancel a high-profile, Peace Pipeline project, with Pakistan over lengthy construction delays, thus depriving energy-starved Pakistan of some 22 million cubic meters of gas per day. If negotiations fail to come up with a way to feasibly realize the project, the project could be canceled entirely. |
| 5/2/2017 | Iranian President called on Pakistan to push for completion of a long-awaited gas pipeline between the two countries. Iran has already completed construction of the Iranian section of a pipeline that allows for exporting gas to Pakistan. |
| 6/8/2017 | Russian companies are considering possibility of Iran-Pakistan-India offshore gas pipeline construction. They also are studying the possibility of liquefied natural gas supplies to Pakistan and possible engagement in projects for the modernization of a number of thermal power plants in Pakistan. |
| 9/4/2017 | Iran says a third party is needed in the Iran-Pakistan gas pipeline in order to ensure payment of Tehran's gas money by Islamabad. |
| 12/3/2017 | Iranian Foreign Minister and his Pakistani counterpart mulled the ways for realizing the project on Iran-Pakistan joint gas pipeline. |
| 12/4/2018 | The new government in Pakistan under the leadership of Prime Minister Imran Khan intends to complete the long-delayed Iran-Pakistan gas pipeline. the government will do all it can to complete part of the pipeline that passes from Pakistani territory. An Iranian delegation recently visited Pakistan to discuss the IP project. Pakistan is willing to complete the gas pipeline as it needs energy. |
Third Party Needed in Iran-Pakistan Gas Pipeline ProjectIran says a third party is needed in the Iran-Pakistan gas pipeline in order to ensure payment of Tehran's gas money by Islamabad. ... |
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Partners and shareholders
| Share | Profile | News | |
| National Iranian Gas Export Company (NIGEC) | 100 % |  |
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Suppliers, Contractors & Service providers
| $Value | Profile | News | |||
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ILF Consulting Engineers | 55 M | |
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| Pakistan government has awarded a feasibility study contract to ILF, on 25 October 2010, with the condition that the consultant will complete its job in only 12 months, against original plan of 18 months. | |||||
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ILF Consulting Engineers | 250 M | |
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| Pakistan has awarded the $250 million contract for laying of Iran-Pakistan (IP) gas pipeline in its territory to ILF Engineering German company. | |||||
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National Engineering Services Pakistan (Pvt.) Limited | |
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| NESPAK is preparing the feasibility report with ILF for Iran-Pakistan Gas Pipeline. | |||||
|
Tadbir Energy Development Group | 1,500 M | |
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| Pakistan has awarded Tadbir Energy Company a contract to build Pakistan part of Iran-Pakistan gas pipeline. | |||||
Major developments and articles
5 global consultants participate in GAIL’s meet on Iran – India Pipeline
Agreement on Tri-Nation Gas Pipeline Likely Next Month
Iran, India, Pakistan Discuss Implementation of Peace Pipeline Project
Pakistan, Iran Conclude First Round of Gas Pipeline Talks
India, Pakistan Near Accord on Iranian Gas Price, Iran Says
Iran-Pakistan Gas Pipeline Contract Signed
Deora Says India Pursues IPI Gas Project
Iran-Pakistan Pipeline Will Be Completed in 3 Years
Pakistan Seeks China's Help for IP Gas Pipeline
Pakistan to Invite Gazprom to Join IP Gas Pipeline
Pakistan Needs to Import Gas from Iran
Work on Iran-Pakistan Pipeline to Start in Six Months
Iran-Pakistan Gas Pipeline to Complete by End of 2012
China to Join Iran-Pakistan Gas Pipeline
NESPAK Preparing Feasibility Report of Gas Pipeline
Pakistan to Borrow $300 Million to Fund IP Gas Pipeline
Chinese Companies Asked to Finance Iran-Pakistan Gas Pipeline
Pakistan Urges for Early Completion of Iran-Pakistan Pipeline
Iran, Pakistan to Increase Gas Exports
Iran-Pakistan Gas Pipeline to Complete Soon
Consortium of Iran-Pakistan Gas Pipeline Formed
Balochistan Gives Land to Lay Iran-Pakistan Gas Pipeline
Gas Import, High Priority for Islamabad
Cabinet Directs Placing IP Project on Fast Track
Sanctions Imposed Against Iran Don’t Affect IP Project
Second Phase of Laying IP Gas Pipeline Begins
Iranian, Pakistani Presidents Agree to Pursue IP Pipeline
In Less Than a Year Iran’s Gas Reaching Pakistan Border
Joint Commission to Discuss IPI Gas Pipeline Project
Joint Iran-Pakistan Gas Project Excluded from Western Sanctions
Zardari to Finalize Gas Pipeline Deal in Tehran
Iran, Pakistan Inaugurate IP Gas Pipeline
Iranian Oil Minister Visits New Delhi to Talk about Peace Gas Pipeline
Rouhani, Zardari Reiterate Rapid Construction of IP Pipeline
New Pakistan Government Will Complete IP Pipeline
Pakistan Section of IP Pipeline will Take 2 Years
Russia Offers to Assist Pakistan Construct IP Pipeline
Pakistan Asks Iran to Build Pakistani Side of IP pipeline
Pakistan to Pursue IP Gas Pipeline Project
Iran Suspends Pakistan Gas Pipeline $ 250m Loan
Pakistan Must Complete IP Gas Pipeline
Pakistan Serious to Complete IP Pipeline
Iran Rejects Claim of New Agreements with Pakistan on IP Gas Pipeline
Zangeneh Denies Revoking Penalty Clause in IP Gas Pipeline Project
Third Party Needed in Iran-Pakistan Gas Pipeline Project
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