Iran and Pakistan signed a gas sales purchase agreement in May 2009 in order for the project, which includes construction of a 2,670 km long $US3.2 billion onshore gas pipeline running from the Assaluyen gas field in southern Iran to Pakistan.

When completed the pipeline will carry up to 60 MMcm/d of gas from Iran to Pakistan.

The project was initially to include India, with the pipeline connecting to GAIL’s Hazira – Vijaipur – Jagdishpur Pipeline in Gujarat. However, India refrained from signing an agreement to develop the pipeline due to concerns about pipeline security.

According to officials from both Iran and Pakistan, this does not mean that India cannot join the project at a later stage.