Iran, it seems, will abandon the multi-billion-dollar contract to supply gas to Pakistan under the IP gas pipeline project.
Fars news agency quoted Iranian Oil Minister Bijan Namdar Zanganeh as saying that the contract for supplying gas to Pakistan is likely to be annulled, the Daily Times reports.
However, he did not reveal any other detail, the report added.
Iran was supposed to export 21.5 million cubic meters of gas per day to Pakistan from next year.
The IP gas pipeline project, worth 7.5 billion dollars, has faced repeated delays since it was conceived in the 1990s.
Iran has already completed the 900 kilometer pipeline extending to the Pakistani border.
However, Pakistan has not been able to do much progress on its part of the line due to lack of funds and warnings that it could be in violation of U.S. sanctions on Iran.
The comments came two days after Pakistani oil minister, Shahid Khaqan Abbasi, said that they risked being punished by sanctions on Iran.
