Industry regulations

US Opposition to Iran-India Gas Pipeline Linked to Terror Support, Not Nuclear Programme

Strategic Insights

Mar 14, 2005 — 1 min read

The US opposition to a gas pipeline from Iran to India stems from a law that prohibits Tehran's economic expansion if it continues to support terrorist activities, according to Teresita Schaffer, former US Ambassador to Sri Lanka. Speaking at the Observer Research Foundation and the University of Madras, Schaffer clarified that US concerns on the pipeline have no direct link with Iran's nuclear programme. The Iran-Libya Sanctions Act (ILSA) disallows any move that would aid Iran's economic expansion as the country is considered a "safe haven for terrorists". Schaffer suggested that the US should not interfere in the pipeline through Pakistan, as it could be a significant boost for the India-Pakistan peace process.

Key Takeaways:

The US opposition to the Iran-India gas pipeline is driven by the Iran-Libya Sanctions Act (ILSA), which prohibits Iran's economic expansion if it continues to support terrorist activities.
Teresita Schaffer, former US Ambassador to Sri Lanka, emphasized that US concerns on the pipeline have no direct link with Iran's nuclear programme.
The US is opposing the pipeline through Pakistan, despite its potential to boost the India-Pakistan peace process, considering it to be a tremendous boost for peace between New Delhi and Islamabad.
India has tied-up imports of 7.5 million tonnes of Liquefied Natural Gas (LNG) per annum from Iran from 2010 and is negotiating imports of natural gas through an onland pipeline passing through Pakistan.
Schaffer is currently the director, South Asia Program, Centre for Strategic and International Studies (CSIS), Washington.

Statistics:

7.5 million tonnes: The amount of Liquefied Natural Gas (LNG) that India has tied-up imports from Iran per annum since 2010.
2010: The year India began importing LNG from Iran.
Islamabad: The city, along with New Delhi, whose peace process could be significantly boosted by the pipeline through Pakistan.

Sources:

Asia Pulse, March 15
PTI (Press Trust of India), March 15
Teresita Schaffer's speech at the Observer Research Foundation and the University of Madras, Chennai, India.

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