Iran-Pakistan-India Pipeline May Not Materialise

The Iran-Pakistan-India (IPI) gas pipeline may never materialise due to differences between India and Pakistan, according to former Indian diplomat.

“We made tremendous progress. The problem was the state of our relations with Pakistan. The problem is not with Iran. We reached up to the price stage. But then the problems began due to the collapse of Musharraf regime. I do not believe the pipeline will happen,” former Indian Ambassador to the UAE, Oman and Saudi Arabia Talmiz Ahmad said while speaking at Gulf Intelligence Energy Forum in Abu Dhabi on Tuesday, reported Gulf News newspaper.

The idea of IPI pipeline took concrete shape in the 1990s. Discussions between the governments of Iran and Pakistan started in 1994. A preliminary agreement was signed in 1995. Later Iran made a proposal to extend the pipeline from Pakistan into India. In February 1999, a preliminary agreement between Iran and India was signed. However, India later withdrew from the project citing security reasons.

Currently, only Iran-Pakistan (IP) section of the pipeline is in the works with Iran having finished laying the pipeline on its soil.  But due to sanctions on Iran, Pakistan is yet to start work on the pipeline.

India on the other hand is negotiating with Iran to build $4.5 billion under sea gas pipeline bypassing Pakistan.