Iran hopes to complete its portion of the construction of a long-delayed natural gas pipeline to neighbouring Pakistan by 2013.

President Mahmoud Ahmadinejad met with Pakistan’s president Asif Ali Zardari for bilateral trade talks in Tehran on 16 July, according to state-owned Irna news agency.

Construction of the pipeline is under way in both countries, stretching from the South Pars gas field in the Gulf into Pakistan’s western Balochistan province carrying 21 million cubic metres a year (MEED 14:6:10).

Ahmadinejad expressed his hope that the pipeline would be operational by the end of 2012.  The two presidents also discussed plans for the transfer of electricity from Iran to Pakistan.

Despite holding the second largest natural gas reserves, the Islamic republic continues to play just small role in the global gas market, with Turkey as its only current customer. Discussions with Pakistan began in 1994 and in 1999 Iran brought in India to the talks as an additional customer.