The Upper House of Parliament was informed on Thursday that there was no pressure on Pakistan regarding Iran-Pakistan (IP) gas pipeline project and it would be completed by 2013, one year ahead of schedule. Dr Asim Hussain, Minister for Petroleum and Natural Resources said that tender for pipes and compressors, which are major components of the project, would be floated this month and orders placed accordingly.
He said two financial advisers have been appointed and their names would be announced in a couple of days. The feasibility report is under way, the minister said, adding that the pipeline from Iran would follow coastal highway, Kirther and Nawabshah and areas falling on the route would be provided electricity and gas to a certain extent.
Dr Asim said Turkmenistan gas pipeline project has also taken a great leap forward after nearly a decade as signing of Gas Supply and Purchase (GSP) agreement would be held on November 15 in Turkmenistan. The minister said there has been a new gas discovery in Balochistan, which would be as big as Sui gas. He said there are also large reservoirs of shell gas which are more than the available conventional reservoirs.
He said the country is facing gas crisis in short term but prospects. He said a load management plan is being worked out for December and January next year. He said the new petroleum exploration and production policy is in the offing to provide additional incentives to investors for exploration of oil and gas in the country. These incentives, he added, would take care of extra risk taken by companies for doing business under the present security environment.
He said work on IP project implementation is already in progress, adding that pursuant to the clearance by concerned authorities, the engineering and project management (E&PM) consultancy contract with ILF Nespak, JV is already in place. The E&PM consultant, he added, has already started work on detailed route survey (DRS) and front end engineering design (FEED) to be followed by bankable feasibility, study route reconnaissance, social and environmental impact assessment (SEIA) and supervision, etc.
He said the physical construction of the pipeline shall follow the completion of bankable feasibility study and the first gas flow is targeted by end of 2014. The route reconnaissance survey, he added, has already been completed in July 2011 and the consultant is currently working on the pipeline design and engineering as well as the feasibility study.
About cost of the project, the minister said that estimated project cost is $1.5 billion. However, this will be firmed up after completion of bankable feasibility study by E&PM consultant. On project financing/construction, he said keen interest has been shown by various major international investors from China, Russia and Middle East and initial information has been exchanged with interested parties.
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