Govt Allocates Rs 25 Billion for Development of Gas Infrastructure in Pakistan

There may still be hope for the long awaited Iran-Pakistan (IP) gas pipeline project. The government has allocated Rs25 billion to develop the gas infrastructure in the country and the allocated funds will also be used for the IP project.

According to APP sources, “An allocation of Rs25 billion has been made in the current fiscal year under the head of Gas Infrastructure Development Cess (GIDC) for the infrastructure development including IP gas pipeline project.”

The pipeline was under discussion during the recent visit by the President of Iran. Sanctions have been lifted from Iran, which has spurred both countries to revive discussion on the long delayed project

“Pursuant to the meeting, Iranian side had invited Pakistan for a meeting, so a Pakistani delegation is expected to visit Iran shortly for which necessary approval has been sought from the competent authority,” said APP sources.

Details of the Iran-Pakistan Gas Pipeline Project

The pipeline will be 56-inch in diameter and will initiate at the South Pars gas-field in Iran and will end at Nawabshah. The pipeline is going to be 1,931km long.

1,150km of the pipeline’s portion is going to be in Iran and the remaining portion will be in Pakistan.

The Gas Pipeline will provide 750 mmcfd gas flow, which will help generate 4,000MW of electricity.

Each country will be responsible for construction of the pipeline in their respective territories.

Here’s the timeline of the project:

  • Inter-Governmental Framework Declaration  on May 24, 2009
  • Gas Sales Purchase Agreement was reached on June 2009.
  • Pakistan issued sovereign guarantee on May 28, 2010.
  • Project consultant was appointed on April 11, 2011
  • Design, feasibility & all formalities completed on September 8, 2012.

via BR



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