TEHRAN – Iran and Pakistan failed to reach an anticipated agreement on the joint investment needed for the pipeline that will carry gas from the South Pars field to the energy-starved South Asian country, Iranian media reported.

The visiting Pakistani Minister of Petroleum and Natural Resources Asim Hussain and Iranian President Mahmoud Ahmadinejad both reaffirmed their keenness to pursue the designed route, Iran government website dolat.ir reported.

The pipeline is designed to carry 21.5 million cubic meters/day of gas from Iran’s offshore South Pars gas field to Iranshahr on the border with Pakistan from 2014. Pakistan is expected to get around 750,000 Mcf/day to 1 Bcf/day of gas by mid-2015.

Ahmadinejad welcomed the “start of construction on Pakistani soil” and said he hoped the project would be able to go on stream as soon as possible. Construction of the pipeline on the Iranian side has already started.

“Pakistan has decided to expand its cooperation in all areas, especially energy, with Iran,” Hussain was quoted as saying.

Iranian news agencies have reported that Tehran is helping Pakistan financially to build its part of the pipeline and is also considering involvement in the distribution network.