Karachi, The Inter State Gas Systems (ISGS) has officially issued tenders for the revalidation of survey and Front-end Engineering Design (FEED) of the Pak-Iran gas pipeline, a project of strategic importance that aims to bolster the energy supply in Pakistan. This development comes ahead of Iranian President Ebrahim Raisi's anticipated visit to Pakistan on April 22, signaling a renewed momentum in the completion of the pipeline, which has been delayed due to international sanctions.

According to Zameen.Com, the tendering process marks a significant step forward in reviving the Pak-Iran gas pipeline project, initially slated for completion in 2014 but stalled due to sanctions imposed by the United States on Iran. The agreement between Pakistan and Iran includes a clause that subjects Pakistan to a hefty penalty of USD 18 billion if it fails to complete the pipeline by March 2024. This penalty underscores the critical nature of the project's timely completion.

The 80-km section of the pipeline, which includes two compressors designed to facilitate an initial flow of 100 million cubic feet per day (mmcfd) of gas, is essential for meeting the increasing local gas demand in Pakistan. The completion of this section is also crucial to avoid the impending penalties. With land acquisition efforts already in progress, the next significant phase involves awarding the Engineering, Procurement, and Construction (EPC) contract.

The total cost of the project is estimated at Rs44 billion, highlighting the substantial investment required to enhance regional cooperation and energy security through the TAPI gas pipeline project. This initiative reflects the government's commitment to addressing energy needs and fostering regional partnerships.