The 1000 km pipeline dubbed Peace Pipeline will transfer about 1 million cubic meters of Iranian natural gas to Pakistani Provinces of Baluchistan and Sindh.

Tehran, June 13, 2010 (Hamsayeh.Net) - The long anticipated major gas pipeline linking Iran to Southeast Asia was finalized by signing of a $7 billion contract between Iran and Pakistan this morning in Tehran.

The 1000 km pipeline dubbed Peace Pipeline will transfer about 1 million cubic meters of Iranian natural gas to Pakistani Provinces of Baluchistan and Sindh. Construction of this pipeline is more than 90 percent complete.

Iran possesses huge natural gas reserves with its giant South Pars field being the largest of its kind in the world. There’re huge untapped reserves of natural gas yet to be discovered across the Iranian plateau and the country is strategically positioned to supply gas to both European as well as the Asians markets.

This latest contract would run for 25 years supplying Pakistan with vast quantities of natural gas for domestic use. Pakistan has in recent years been experiencing an economic downturn following US meddling in the country’s internal affairs. The United States brought instability to Pakistan once it launched a so-called war on terror after the Sept. 11 events. 

Washington has been pressuring Islamabad not to cooperate with Tehran in major energy projects thus undermining Pakistan’s development as compared to that of India. New Delhi enjoys US and Western economic backings while Pakistan was being staged to undergo internal crisis, poverty, underdevelopments and civil disobedience in the form of terrorist activities amongst minorities and religious sects.

A nuclear-armed Islamic country Pakistan would have enormous economic potential working with neighbouring countries, which would in turn bring greater prospects for all of the countries of the region for many years to come.