The Pakistani government has enlisted the expertise of three prestigious international law firms to represent the nation in a legal dispute with Iran regarding the Iran-Pakistan gas pipeline.
Sources within the Law Division and the Attorney General’s Office confirmed that Pakistan has hired the services of renowned firms—White & Case, Three Crowns, and Willkie Farr Gallagher—along with a leading counsel based in Australia, known for his specialization in oil and gas infrastructure law, a media report said on Wednesday.
The legal teams have been briefed on the details of the Iran-Pakistan (IP) gas pipeline project and the challenges that have hindered its completion. On October 18, 2024, Pakistan submitted the details of its legal representation to the French Court of Arbitration.
As part of the arbitration process, Pakistan will appoint one arbitrator, while Iran will select another. Both nations will jointly nominate a third arbitrator, completing the tribunal required for the case to move forward.
Once established, the Arbitration Court is expected to decide within a year. The dispute escalated after Iran issued a final notice to Pakistan in August 2024, stating that it had no choice but to pursue legal action after Pakistan failed to construct the pipeline by the September deadline.
Iran has filed a case in the Court of Arbitration in Paris, alleging that Pakistan has failed to complete its section of the pipeline and to meet the agreed intake of 750 million cubic feet of gas per day.
The Iran-Pakistan gas pipeline project has faced significant delays since 2014, primarily due to proposed U.S. sanctions. The Gas Sales Purchase Agreement (GSPA), signed in 2009 under French law, does not recognize these sanctions.
In September 2019, Pakistan’s Inter-State Gas Systems (ISGS) and Iran’s National Iranian Gas Company (NIGC) revised their contract, allowing Iran to refrain from international legal action over construction delays, provided Pakistan completed its pipeline by 2024.
Under the revised terms, Pakistan was to finish its portion of the pipeline by February-March 2024. However, after an extended 180-day deadline expired in September 2024 without progress, Iran issued its final notice.
According to French law, if Iran did not initiate arbitration by the September deadline, it would lose its right to pursue legal action. Previously, Iran had sent a second legal notice to Pakistan in late 2022, demanding the completion of its pipeline segment by February-March 2024 or face potential penalties in the billions of dollars.
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Iran to take Pakistan to Paris Arbitration Court over stalled gas pipeline project
