Iran has sent a final notice to Pakistan before approaching the Paris Arbitration Court (PAC) regarding the delay in the gas pipeline project even after the extended 180-day deadline, a government official told The News.
In 2009, a Gas Sales Purchase Agreement (GSPA) was signed under French law. The project was delayed for ten years due to United States sanctions. However, the French arbitration court does not accept the US embargos.
The agreement read, “The Inter-State Gas Systems (ISGS) of Pakistan and the National Iranian Gas Company (NIGC) inked the revised contract in September 2019, and under that contract, Iran would not approach any international court if there was a delay in the construction of the pipeline. However, Pakistan would erect its pipeline by 2024, after which it would have an intake of 750 million cubic feet of gas from Iran daily.”
Under the French GSPA, if Iran does not exercise its right to move the arbitration court till September 2024, it will lose its battle for legal rights against Pakistan.
