Islamabad, Feb. 3: A Pakistan delegation has flown to Iran to hold talks on setting new timeframe for the completion of the Iran-Pakistan (IP) gas pipeline project.
The delegation would hold talks with Iranian authorities to set a new mutually agreed timeframe for the project during the talks beginning in Tehran today.
Under the Gas Sales Purchase Agreement (GSPA) signed earlier with Iran by the outgoing PPP government in 2009, the first flow of gas to Pakistan should have started by Dec 31, 2014.
According to the Nation, the two countries are responsible for completion of the pipeline within their territories.
Failure on part of a party leads to penalties equivalent to the price of daily gas quantities that is around three million dollars for every day’s delay in completion of the project.
Iran can also claim billions of dollars in compensation for any breach of contract.
The delegation would make all efforts to convince Iranian government and try to get extension for completing the work on the gas pipeline project.
Iran had laid pipeline on its side by investing two billion dollars but Pakistan has been affected by US sanctions.(ANI)