To build or not to build the 'peace pipeline'
Despite dwindling local gas reserves, and the soaring domestic demand for gas, Pakistan has not yet been able to operationalise its part of a gas pipeline project with Iran. Given the growing animosity between the US and Iran, Pakistan is unlikely to avert American sanctions, if it decides to proceed with this longstanding deal with Iran. The idea of importing Iranian gas via a pipeline began being discussed back in the mid-1990s. Iran then wanted to build a gas pipeline to India via Pakistan, and it even signed a preliminary agreement with India to this effect in 1999. Despite some meetings to negotiate prices and other modalities, no real progress was made on formalising the tripartite deal over the next decade. After India had signed a nuclear deal with the US in 2008, it decided to formally withdraw itself from the tripartite pipeline project. The US also began pressuring Pakistan to follow suit, and it tried enticing Pakistan with support to construct a liquefied natural gas termi...