IPI Pipeline

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IPI Pipeline

The Iran-Pakistan-India Pipeline, also known as the IPI Pipeline and the Peace Pipeline is a proposed pipeline to deliver natural gas from Iran to Pakistan and India. The project was conceptualized in 1989 by Rajendra K. Pachauri in partnership with Ali Shams Ardekani, former Deputy Foreign Minister of Iran. Dr Pachauri proposed the plan to both Iranian and Indian governments in 1990. The government of Iran responded positively to the proposal. A preliminary agreement was signed in 1995 by Iran and Pakistan to establish a pipeline from South Pars Gas field to Karachi. Later, Iran proposed an extension to India, and a preliminary agreement was signed in 1999.

In 2009, after signing a civilian nuclear deal with the United States, India withdrew from the project citing "security and pricing issues." This step was seen as a United States coup. Their animosity with Iran rubbed off on India, who have traditionally had great relations with Iran. India put this relationship on the back burner, probably for the sake of closer US relations, something Presidents Clinton and Bush had been striving for. What is ironic is that the United States continues to provide military and financial aid to Pakistan in spite of it remaining in the contract with Iran. However, in 2010, the Indian government called on Pakistan and Iran to hold trilateral talks in Tehran. In January 2010, the United States government asked Pakistan to back out as well, and offered alternative pipelines. However, the Pakistani government signed an agreement in March with Iran. On April 12, 2010, Iran announced that it has completed construction of 1,000 kilometers of the pipeline out of the 1,100 kilometers portion on Iranian soil. On this Iranian ambassador to Pakistan said that "Iran has done her job and it now depends on Pakistan."

The 2,775-kilometre pipeline will be supplied from the South Pars field and stretch over 1,100 kilometres through Iran. In Pakistan, it will pass through Baluchistan and Sindh. In Khuzdar, a branch would spur-off to Karachi, while the main pipeline will continue towards Multan. Though India left negotiations, its rapid economic growth and growing energy needs may force it to overcome political obstacles and accept the extension of the pipeline into either Kutch or Delhi.