ISLAMABAD: The operational agreement on the construction of a natural gas pipeline from the South Pars field of Iran has been delayed for another month.
Sources from the Ministry of Petroleum and Natural Resources told DawnNews on Tuesday that both sides had planned to sign off the agreement before Feb 15 but now due to some formalities and technical aspects, it has been delayed.
The sources added that Iran wants to ship some of the gas from the offshore South Pars complex.
According to the sources, another reason for the delay was that Pakistani government had been unable to allocate proper financing for this project and the US was not willing to give financial assistance in this regard.
Initially proposed as an offshore pipeline through Pakistan’s exclusive economic zone, the current plan under discussion is an overland route from the South Pars fields in southern Iran.
In the first phase, the pipeline would supply 60 million cubic meter of gas per day to Pakistan.