Government of Pakistan will have to permit a third country to import gas through IP pipeline in the event of any such country joining the project in the future. However such permission will be subject to the gas tariff and transit fee that will be worked out at that time’s best practices.
Pakistan and Iran have entered into an initial agreement for the construction of the pipeline in the Iranian Capital, Tehran. As per the agreement, the gas pipeline could be extended in the future to take Iranian gas to India. Initially, the project expected to include India, but the country has stayed out of the agreement because of concerns about the pipeline’s security.
The 2,100-kilometer pipeline is expected to supply 60 million cubic meters of gas a day to Pakistan. The Federal Cabinet had earlier agreed to permit the import of gas at the rate of 80% of the price of crude oil.
