Islamabad approves IPI pipeline

KARACHI, Pakistan, Aug. 25 (UPI) -- The Pakistani government moved forward with approval for the development and route of the Iran-Pakistan-India gas pipeline at a cost of $1.2 billion.

The Economic Coordination Committee at a conference in Karachi announced it gave its approval for the long-delayed IPI pipeline project.

Federal Minister for Petroleum and Natural Resources Syed Naveed Qamar announced that much of the pipeline would run through the southern province of Baluchistan.

"The pipeline will travel via Baluchistan to Kirthar, finally to reach Nawabshah, the hub from where the gas pipelines travel to the country," he said.

Pakistani Prime Minister Yousaf Raza Gilani had asked for considerations of the IPI route to include offshore routes to allay parliamentary concerns over the price and security of the gas pipeline, though lawmakers complained that consideration caused undue delays.

Qamar added the majority of the work on the pipeline would be conducted by foreign companies, Pakistani newspaper The Nation reports.

Islamabad is considering financial plans for the project that include government and private-sector funding as well as equity from stock offerings.

IPI was envisioned in 1989, though political, security and economic complications plagued development. The pipeline would run more than 2,000 miles from the South Pars gas field.

India's role in the project remains in doubt, though Qamar said he would give New Delhi special consideration should it reconsider.

"India has withdrawn from the project by itself, but if it wants to join the project in future, a separate pipeline will be laid for this purpose," he said.