Iran, Pakistan Ink Natural Gas Pipeline Deal

Pakistan signed a deal with Iran paving the way for the construction of a much-delayed pipeline pumping Iranian natural gas to the energy-starved South Asian country, according to a report by Reuters. The deal, valued at $7.6 billion, is expected to help Pakistan combat ongoing energy shortages.

The pipeline will connect Iran”s South Fars gas field with Pakistan”s southern Baluchistan and Sindh provinces. Iran has the world”s second-largest gas reserves after Russia. But sanctions by the West, political turmoil and construction delays have slowed its development as an exporter, according to Reuters.

Under terms of the deal, 750 million cubic feet of gas will be pumped to Pakistan daily from Iran by mid-2015.

To read the full Reuters report on this story, click here.