India–Iran–Pakistan Pipeline (IPI): Why It Failed

Background (What was the project?)

The Iran–Pakistan–India (IPI) pipeline was a proposed gas pipeline from Iran → Pakistan → India.

Length: about 2,700+ km

Aim:

Supply cheap natural gas to India and Pakistan

Reduce dependence on expensive LNG imports

It was also called the “Peace Pipeline” because it could improve regional cooperation.

Why India was interested

India needed:

Cheap and steady energy supply

Diversification from West Asia imports

Pipeline could supply large volumes of gas daily for industries and power sector.

Why the project collapsed (Key Reasons)

Security concerns (Major reason)

Pipeline had to pass through Pakistan (especially Balochistan)

Issues:

Terrorism

Political instability

India feared supply disruption or sabotage

India–Pakistan tensions

Relations were not stable (e.g., Kargil conflict)

Lack of trust made long-term cooperation risky

US pressure and sanctions on Iran

US opposed the project due to Iran’s nuclear program

Risk:

Sanctions on countries investing in Iran

This discouraged India from continuing the project

Pricing disputes

India and Iran could not agree on:

Gas pricing

Transit fees via Pakistan

This made the project economically uncertain

Strategic shift by India

India later moved towards:

TAPI pipeline (Turkmenistan–Afghanistan–Pakistan–India)

Reason:

More international support

Less political risk compared to Iran

What is TAPI pipeline? (Alternative)

Route: Turkmenistan → Afghanistan → Pakistan → India

Goal:

Bring gas from Central Asia

However:

Still facing delays due to security issues in Afghanistan

Current relevance (Why in news?)

Ongoing West Asia crisis has:

Highlighted India’s heavy dependence on imported energy

Revived debate: Whether India should have continued with IPI

Final takeaway

IPI pipeline failed mainly due to security risks, geopolitical tensions, US sanctions, and pricing disputes, leading India to shift towards alternative energy routes like TAPI.