Iran to take Pakistan to arbitration over delayed "Peace" pipeline project

Iran has notified the Pakistani government that it plans to file a case with the International Court of Arbitration at the International Chamber of Commerce in Paris in September 2024.

The move comes in response to Pakistan's failure to meet its contractual obligations for the construction of the "Peace" pipeline, Caliber.Az reports, citing foreign media.

The agreement for constructing the Pakistani section of the pipeline was signed in 2009. Islamabad was committed to completing its part of the project by December 2014. The contract included a penalty clause stipulating a $1 million fine for each day of delay starting from January 1, 2015.

However, construction was postponed by 10 years in 2014 due to US sanctions on Tehran. Iran-Pakistan (IP) Gas Pipeline, also known as the Peace Pipeline, is an under construction pipeline which would deliver gas from Iran into Pakistan.

This pipeline was formerly planned to extend to India and was called Iran-Pakistan-India (IPI) Gas Pipeline, however, after India withdrew, Iran and Pakistan went ahead with the plan.