In a shocking development, Iran has served its final notice to Pakistan, informing that it will move to the Paris Arbitration Court in September 2024 if no progress is made regarding the of constructing of gas pipeline. “Tehran is left with no other choice,” the notice states.
This project has faced a 10-year delay since 2014 due to U.S. sanctions. The Gas Sales Purchase Agreement (GSPA) was signed in 2009 under French law, with the Paris-based arbitration court designated as the forum to resolve disputes between the two countries.
The Inter-State Gas System of Pakistan and the National Iranian Gas Company inked the contract in September 2019. According to this agreement, Iran would not approach any international court in case of delay, but Pakistan would construct its pipeline by 2024. After completion, Pakistan would receive 750 million cubic feet of gas daily from Iran.
According to the updated agreement, Pakistan had committed to constructing its section of the pipeline within its borders by February-March 2024. In a gesture of goodwill, Iran granted Pakistan an extension, pushing the deadline by 180 days to September 2024. However, despite this accommodating measure, Pakistani authorities were unable to make significant progress on the pipeline’s construction. This final notice serves as a clear indication of Iran’s growing impatience and its intent to seek resolution through formal arbitration channels if the situation remains unresolved.
Iran previously issued its second legal notice to Pakistan in November-December 2022, asking Pakistan to construct its portion of the Iran-Pakistan gas pipeline project in its territory by February 2024.
The top decision-makers of the incumbent regime are reportedly saddened and disappointed by this development. However, senior officials of the Petroleum Division remain tight-lipped and have not offered any comment on the final notice sent by Iran to Pakistan.
