The pipeline`s initial capacity was expected to be 22 billion cubic metres of natural gas per year, which would then be increased to 55 billion cubic metres (1.9 trillion cubic feet).  However, as a bilateral project between Iran and Pakistan, the pipeline will carry only 8.7 billion cubic metres of gas per year as contracted and will carry 40 billion cubic meters (1.400 billion cubic feet) as maximum capacity. The piping has a diameter of 1400 mm.  It is expected to cost $7.5 billion and be commissioned by 2013.   In February, Iran sent a formal letter to Pakistan stating that it would seek legal action if Pakistan withdrew from the pipeline agreement. On May 1, 2012, it was reported that Pakistani Secretary of State Hina Rabbani Khar had stated that Islamabad would not give in to U.S. pressure to stop the project and that it would finalize the massive pipeline project “at all costs” and that the project was in line with the country`s national interest.  Fatemeh Aman, a leader of the Atlantic Council, a think tank for U.S. international affairs, told the DW that Pakistan lacked both the means and the will to complete the pipeline and did not want to ruin its relations with its allies. From 2017 to 2019, there has been no update on the development of the project. But in September 2019, Pakistan`s Inter State Gas Systems (ISGS) and the National Iranian Gas Company (NIGC) devised a new agreement to build the pipeline.
Under the new agreement, countries will “develop a practical solution for the completion of the project” and Pakistan is expected to build its share of the project by 2024.  Under the revised agreement, Pakistan would no longer have to pay a fine to Iran and Iran would not go to an arbitration tribunal if it delayed the construction of IP pipelines. In 2004, the project was revived after the publication in December 2003 of UNDP`s Peace and Prosperity Gas Pipelines report by Pakistani oil engineer Gulfaraz Ahmed. The report highlighted the benefits of the pipeline to Pakistan, India and Iran.  However, the project is currently in danger of being cancelled because Pakistan has not committed to build its part of the pipeline. U.S. sanctions against Iran in 2012 led Pakistan to trace the project; Although sanctions have been lifted in the meantime, Pakistan has not re-engaged in the project. In addition, in 2015, Pakistan agreed to import gas from Qatar, further weakening Pakistan`s ability and economic necessity to complete the pipeline.  On 12 June 2013, Pakistan`s newly elected Prime Minister Nawaz Sharif brushed aside fears that the project would be abandoned and said the Pakistani government was committed to the project and was targeting the first gas flow from the pipeline in December 2014. The Prime Minister also said that his government planned to engage in the Turkmenistan-Afghanistan-Pakistan-India pipeline project.
 The Iran-Pakistan Pipeline (IP), also known as the Peace Pipeline, is a pipeline project that would supply gas from Iran to Pakistan.  The firm also adopted the cooperation agreement on 30 January 2013. However, the Iranian government unilaterally withdrew from the government-government cooperation agreement on 17 March 2014 and Pakistan served on 29 March 2014 the Force Majeure and/or Excusing Events Notice under the IP-GSPA to National Iranian Oil Company (NIOC). The Pakistani side has taken a “position that this case of force majeure and the conditions for debt relief are still in place, and the IP GSPA obligations therefore remain suspended.” The pipeline agreement was first signed by Iran and Pakistan in 1995 and the United States has repeatedly spoken out against the agreement.