Pakistan has begun efforts to complete a section of a gas pipeline in cooperation with Iran, according to the News.
"Authorities have started work on the construction of an 80-kilometre section of the Pakistan-Iran gas pipeline from Gwadar to a point where it can be connected to the Iranian gas pipeline," the publication added.
It is noted that construction began before the expected visit of Iranian President Ebrahim Raisi to Pakistan on 22 April.
A senior official in Pakistan's Ministry of Energy has said that the Interstate Gas Company has already issued tenders for the study and preliminary design of the pipeline.
The Iran-Pakistan gas pipeline deal, signed in 2009 with a target completion date of 2015, has been delayed since 2014 due to Pakistani concerns about the potential impact of US sanctions.
In addition, in January, after completing a 900-kilometre section of the pipeline within its borders, Iran sent a third notification to Islamabad indicating its intention to seek arbitration over Pakistan's failure to comply with the terms of the agreement.
In response, the interim Pakistani government decided in February to implement the pipeline project in two phases on its territory. A plan was also drawn up for the first phase, involving the installation of an 80-kilometre section of the pipeline.
Although Pakistan has cited US sanctions against Iran as an obstacle to the project's progress, Tehran has consistently argued against the justification for these sanctions. In January, Tehran issued a final notice to Pakistan, giving it until February-March 2024 to complete its section of the pipeline or face an $18 billion penalty under the Gas Sales Purchase Agreement (GSPA) for the 781-kilometre project.
The urgency of laying the 80-kilometre section of the pipeline was underlined by the official in order to avoid arbitration in France, which could hold Pakistan responsible for the aforementioned penalty.
The 80-kilometre section of the pipeline will initially carry 100 million cubic feet per day (mmcfd) of gas, less than the 750 mmcfd expected over the 25 years of the project.
Following this phase, the authorities will proceed with land acquisition followed by the award of Engineering, Procurement and Construction (EPC) contracts.