Iran–Pakistan–India (IPI) Pipeline and TAPI Pipeline

Source: BS

Context:

The ongoing instability in West Asia has once again exposed India’s high dependence on imported energy, particularly natural gas. This has revived discussions around long-pending transnational pipeline projects such as the Iran–Pakistan–India (IPI) and Turkmenistan–Afghanistan–Pakistan–India (TAPI) pipelines.

Iran–Pakistan–India (IPI) Pipeline

The Iran–Pakistan–India (IPI) Pipeline, popularly known as the “Peace Pipeline”, is a proposed 2,775 km natural gas pipeline aimed at transporting gas from Iran’s South Pars field to Pakistan and India.

Timeline:

• Conceptualised in the 1990s
• Major diplomatic progress during 2004–2005

Objectives of IPI

• Provide a cost-effective alternative to LNG imports
• Ensure stable energy supply to India and Pakistan
• Promote regional cooperation and peace through economic interdependence

Key Features of IPI Pipeline

1. Source

• South Pars gas field (Iran) — among the largest natural gas reserves globally

2. Capacity

• Around 60 mmscmd each for:
  • India
  • Pakistan

3. Economic Advantage

• Lower transportation cost than LNG
• Reduced dependence on shipping routes

4. Strategic Significance

• Potential to enhance regional integration
• Intended to act as a tool of energy diplomacy

Why Did India Exit the IPI Project?

India withdrew from the project in 2007 due to:

1. Geopolitical Constraints

• U.S. sanctions on Iran (including CAATSA-related pressures)

2. Security Concerns

• Pipeline route passing through Balochistan (Pakistan)
• Risk of sabotage and instability

3. Pricing and Transit Issues

• Disagreements over gas pricing and transit fees

Current Status of IPI

• Dormant / Effectively stalled
• Limited bilateral progress between Iran and Pakistan

Turkmenistan–Afghanistan–Pakistan–India (TAPI) Pipeline

The TAPI Pipeline is a 1,814 km transnational pipeline project designed to transport natural gas from Turkmenistan to India via Afghanistan and Pakistan.

Timeline:

• Concept originated in the 1990s
• India signed agreement in 2010

Objectives of TAPI

• Diversify India’s energy sources
• Reduce dependence on West Asia
• Enhance regional economic integration

Key Features of TAPI Pipeline

1. Source

• Galkynysh gas field (Turkmenistan)
• One of the world’s largest gas reserves

2. Capacity

• Around 33 billion cubic meters (bcm) annually

3. Institutional Support

• Backed by the Asian Development Bank (ADB)
• Supported by the U.S. as part of regional connectivity strategy

4. Strategic Role

• Provides an alternative energy corridor
• Supports Afghanistan through transit revenues

Current Status of TAPI

• Partially active but largely stalled

Progress:

• Turkmenistan–Afghanistan section inaugurated in October 2025

IPI vs TAPI