Iran calls off Pakistan’s cash fine over pipeline construction delay

TEHRAN, Nov. 10 (MNA) – Managing director of National Iranian Gas Export Company (NIGEC) said Iran has currently no plans to fine Pakistan for delay in gas pipeline construction. On the possibility of fining Pakistan due to a nearly one-year delay in importing gas from Iran, Alireza Kameli said, “currently, Iran has no plans to demand compensation under the terms of the contract.” Stressing that Iran has never intended to fine Pakistan for failing to take Iranian gas, Kameli asserted “we expect Pakistan to begin construction of gas pipelines on its territory.” The official stressed that Pakistan has taken no action to meet its obligations of building part of a pipeline to bring natural gas from Iran adding “the normal sequence is to first construct gas pipelines before negotiating with partners on purchasing natural gas.” He further emphasized that Iran is not concerned over the newly-signed contract between Pakistan and Qatar for transferring LNG. “We have no worries over the the long-term due to the high costs of importing LNG in comparison with construction of pipelines for gas import,” Kameli reiterated. Deputy Oil Minister for International Affairs and Trading Amir Hossein Zamaninia had previously expressed hope that the Pakistani side will remain committed to the contract of importing gas from Iran; “purchasing Iran’s gas would help their own development and on the other hand, Iran already possesses good customers.” The official had also noted that Iran has no intension to terminate the contract or to fine Pakistan stressing “so far, no talks have been conducted with Pakistan to terminate the joint venture.” Pakistan is evading construction of gas pipelines under the pretext of sanctions while they are spending significant financial resources on equipping LNG import terminals as well as on construction of pipelines to distribute and transmit LNG form Qatar. According to Pakistani media reports, the government in Islamabad seeks to import 200 million cubic feet of gas per day in the form of LNG and plans to increase the volume to 400 million cubic feet per day.