What is peace pipeline?

The Iran-Pakistan-India (IPI) pipeline project (also called peace pipeline) is aimed at constructing a 1,620-mile (2700 km) pipeline from Iran's South Pars fields in the Persian Gulf to Pakistan's major cities of Karachi and Multan and then further to Delhi, India. Because of Iran is the most geographically convenient supplier of gas to both countries; Iran is offering to cover 60 percent of the construction costs of the pipeline.

The total length of 2,700 km project would run 1100 km in Iran and 1000 km to Pakistan and in case of agreement with India it will continue 600 km in Indian territory. This project is expected to greatly benefit India and Pakistan, which do not have sufficient natural gas to meet their rapidly increasing domestic demand for energy.

The pipeline can carry 110 million cubic meters of gas a day. The total cost of the project was estimated to be over $7 billion in 2006. In February 2007, India and Pakistan agreed to pay Iran US$4.93 per million British thermal units (US$4.67/GJ) but some details relating to price adjustment remained open to further negotiation.

In April 2008, Iran expressed interest in China's participation in the project. In August 2010, Iran invited Bangladesh to join the project. In 2009, India withdrew from the project over pricing and security issues, and after signing a civilian nuclear deal with the United States in 2008.

Pakistan High Commissioner Abdul Basit said in Kolkata on Wednesday said he is hopeful that the gas pipeline project involving Iran, Pakistan and India would resume once the issue of sanctions against Iran gets resolved.

"The nuclear deal is struck between Iran and six countries - P5+1 countries - and as soon as sanction (scenario) is removed, we hope to have this project back on track," he told media persons at an event organised by the MCC Chamber of Commerce.