Pakistan Enlists U.S. Law Firms to Contest Iran’s Gas Pipeline Arbitration Claim

Pakistan has engaged two U.S.-based law firms to represent it at the International Court of Arbitration (ICA) as it contests Iran’s demand to enforce their bilateral gas pipeline agreement or pay a substantial penalty. 

The two firms will help Pakistan argue against Iran’s claim, focusing on the context surrounding the project’s delays, especially given Pakistan's concerns about international sanctions.

The gas pipeline deal between Pakistan and Iran, formally known as the Gas Sales and Purchase Agreement (GSPA), was signed in June 2009. This project was set to support Pakistan’s energy sector by supplying up to one billion cubic feet of gas per day from Iran’s South Pars Field, one of the largest gas fields in the world. The energy shortage in Pakistan has been a significant hurdle to economic growth and stability, making the promise of Iranian gas an appealing solution to the country’s power supply needs.

Under the agreement, Iran constructed its part of the pipeline infrastructure to the Pakistani border. However, Pakistan has yet to begin construction on its side of the project, citing the need to comply with U.S. sanctions imposed on Iran. These sanctions have discouraged various countries, including Pakistan, from engaging in energy-related transactions with Iran, as such actions could invite secondary sanctions from the United States.

Facing Iran’s push to either see the project through or impose a penalty on Pakistan, Islamabad’s legal representation will likely highlight these complex geopolitical factors at the ICA. Both countries are keen to avoid exacerbating tensions, as a favorable outcome in the arbitration process could set a precedent for other countries navigating similar U.S. sanctions-related issues in energy cooperation.

The case now moves to international arbitration, where Pakistan hopes to defend its decision while seeking to avoid the financial repercussions of an agreement that has proven challenging to fulfill under the current global sanctions framework.

Comments

Post a Comment

Popular posts from this blog

Young wildlife Photographer's photo Of A 'kissing blackbird' Gets Purchased By Co-op

Image
A young wildlife photographer, Ben Pulletz, has achieved a remarkable feat as his photograph of two blackbirds "kissing" has been chosen to be turned into a card and sold in Co-op supermarkets.  The 21-year-old photographer, who resides in Somerset, captured a series of stunning images showcasing animals and nature in his local surroundings. These included a rabbit in a meadow, a grasshopper, a great tit perched among rose hips, and a picturesque field of daisies. For years, Pulletz has been tirelessly pursuing the perfect wildlife photographs, never imagining that a national chain would take an interest in his work. He expressed his delight, particularly regarding the use of his daisy photograph, which happens to be his mother's favorite. The cards featuring Pulletz's captivating images will be launched in 1,300 Co-op stores, and as a gesture of support for wildlife conservation, the Co-op will donate £10,000 to the RSPB (Royal Society for the Protection ...
Read more

Oscar Pistorius' Current Situation After His Release From Prison

Image
Following his release from prison for the murder of his model girlfriend, Reeva Steenkamp, Oscar Pistorius, the disgraced former Paralympian track star, has resurfaced after eight years.  Now 37 years old, Pistorius served nine years of a 13-year prison sentence for fatally shooting Steenkamp on Valentine's Day in 2013. During his trial, Pistorius claimed that he mistook Steenkamp for a burglar when he fired shots through a closed bathroom door in the middle of the night. However, prosecutors argued that he knew it was Steenkamp on the other side because they had just had an argument, and he witnessed her running into the bathroom and slamming the door. Recently, images captured by South African news site Netwerk24 show Pistorius with a wide grin on his face, but he appears a mere shadow of his former self. His hair has turned fully gray, and he is noticeably thinner compared to his previous weight gain during his time in prison. Since his release in January, Pistorius ...
Read more

Victor Osimhen Leads Galatasaray to Thrilling Victory Over Tottenham in Europa League Clash

Image
In an electrifying UEFA Europa League encounter, Victor Osimhen was the driving force behind Galatasaray's impressive triumph over Tottenham Hotspur, securing a crucial victory that has reinvigorated the Turkish side's campaign.  The Nigerian forward's stellar performance on the European stage showcased his quality and proved decisive as Galatasaray emerged 3-2 winners at home. From the opening minutes, Osimhen set the tone, displaying relentless energy, pace, and skill, constantly pressuring Tottenham’s defense. His powerful runs and clinical finishing left Spurs struggling to contain his influence. Galatasaray’s attacking prowess, largely built around Osimhen, began to take shape early, creating chances that put the visitors on the back foot. The first breakthrough came in the 24th minute, with Osimhen finding the net after a skillful interplay with his teammates. His speed and positioning allowed him to slot the ball past Tottenham's goalkeeper, igniting ...
Read more