Pakistan formally informed Iran it cannot pursue the gas pipeline project because of US sanctions threat of over Tehran’s nuclear program.
Under the schedule, first flow of gas must start in December 2014. In case of failure, Pakistan will have to pay a penalty of three million dollars per day under the Gas Sale and Purchase Agreement (GSPA), the report said.
The delegation, led by Petroleum Secretary Abid Saeed, cited possible US sanctions for the delay.
Iranian officials said they would respond to the request after consulting relevant authorities, sources said.