Iran’s gas delivery should have started in December 2014 but Pakistan has failed to complete its section of the pipeline under the contract signed back in 2010.
According to Fars news agency, Pakistani officials have officially announced their readiness lately to resume the negotiations and decided to send a delegation to Tehran in the middle of the Persian month of Farvardin which began on March 21 or in early Ordibehesht.
“Although Pakistani officials are subject to the policies of Saudi Arabia and America, the government under pressure from the Pakistani people and businessmen is willing to provide for conditions so that the Iranian natural gas reaches Pakistan,” the source said.
According to the unnamed source, the Pakistani negotiating team has been given complete freedom to negotiate the volume, time and mode of gas imports from Iran and reach a final conclusion.
“Pricing is up for the later stage and if we reach an initial conclusion, we will also enter that stage,” the source added.
The energy crisis in Pakistan which suffers about 12 hours of power cuts a day has worsened in recent years amid 4,000 megawatts of electricity shortfall. The nation of 190 million people can only supply about two-thirds of its gas needs.
Contractually, Pakistan has to pay steep fines to Iran for failing to build and operate its section of the pipeline. Iran’s Minister of Petroleum Bijan Zangeneh has said that Tehran decided not to take the matter to international arbitration because Islamabad did not have any money to pay the penalty or build the pipeline.
Pakistan has however pushed ahead with talks to receive gas from Turkmenistan through a pipeline which is exponentially longer and costlier than the Iran route and has to cross volatile terrain in Afghanistan.
Qatar is currently one of the main suppliers of liquefied natural gas to Pakistan after the two sides signed a 15-year agreement in February 2016 for shipment of 3.75 million tonnes of LNG a year.
In their last negotiations with Iran, the Pakistanis reportedly said they preferred LNG to natural gas. Iranian energy experts have dismissed the proposal as another delaying tactic given that the first Iranian LNG production is years off, while the Pakistanis have started to buy natural gas from Turkmenistan.
Islamabad has been under US and Saudi pressure for years to opt out of the Iran project even though this would entail going the extra mile of more than 700 km across the violence-wracked Afghanistan to get gas from Turkmenistan.