IP construction expected to start soon: Pak state news agency

EghtesadOnline: Pakistani state news agency APP quoting sources said that the construction work on Iran-Pakistan (IP) gas pipeline is expected to begin soon in collaboration with China.

News ID: ۷۷۲۸۴۹

02 January 2017

The official sources in the Ministry revealed that the government was in the process of negotiating amendments in the Gas Sale Purchase Agreement (GSPA) with Iran for early implementation of the much-delayed project, which was conceived in mid-1950s.

“A draft amendment has been shared with Iran, and it has agreed to negotiate on it along with some other amendments in the GSPA, following which construction work on the pipeline is expected to commence soon in collaboration with China,” the sources aware of the project updates said.

Sharing details of the project, the sources said Inter-Governmental Framework Declaration was signed between the two countries on May 24, 2009, while GSPA had been agreed on June 2009, IRNA reported.

Subsequently, Pakistan issued sovereign guarantee on May 28, 2010. The project consultant was appointed on April 11, 2011, while the design, feasibility, route survey and other formalities of the project were completed on September 8, 2012.

The 56-inch diameter pipeline will start from South Pars gas field in Iran and end at Nawabshah, covering a distance of around 1,931 km with 1,150 km portion in Iran and 781 km in Pakistan.

The 750 mmcfd gas flow in the IP pipeline is projected to help generate about 4,000 MW electricity also, along with creating job opportunities in backward areas of Balochistan and Sindh, the sources said.

Secretary Ministry of Petroleum and Natural Resources while addressing a seminar also said: “The country has no option other than to import gas whether it is LNG or through IP as its existing reserves are depleting and there is no major find since long.”