The Cabinet Committee has approved the laying of 81 km pipeline from Iranian border to Gwadar.
According to the details, by laying the pipeline, Pakistan will avoid paying 18 billion dollars in fines, compared to LNG, 750 million cubic feet of gas will be very cheap from Iran. As a result of buying gas from Iran, Pakistan will get 5 billion dollars annually. Iran will withdraw its $18 billion penalty notice under French law.
The decision to lay a pipeline from the Iranian border to Gwadar is in the best interest of Pakistan, the industries will be greatly benefited by the cheap gas from Iran.
Sources say that Pakistan will also ask the US for exemption from sanctions on the IP project. It is buying and selling gas with Iran, Turkey, Iraq and Azerbaijan, which are not subject to sanctions. The construction will cost 45 billion rupees.
