ISLMABAD: Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi on Friday informed the Senate that the government is pursuing the Iran Pakistan Gas Pipeline Project (IPGPP) under the Alternative Strategy approved by ECC of the Cabinet.
In Question Hours, he said that under the strategy, the government would complete around 700 kilometer pipeline to Gwadar deep seaport and Nawabshah.
He said Energy Terminal would be constructed at the site of Gwadar deep seaport. While the remaining 80 kilometers pipeline from Gwadar would take 4 to 6 months for construction soon after lifting of the international sanctions on Iran.
The Minister expressed the hope that construction of pipeline to Gwadar would be completed by December 2017.
Shahid Khaqan Abbasi further informed the house that Pakistan has signed Framework Agreement with China on April, 20 2015 in this regard. Chinese nominated company is expected to submit shortly following which EPC contract negotiations would start. Award of the contract was expected by December, he added.
He said as per the ECC decision, Iranian gas would be supplied to power sector through Sui companies.
To another question he said Pakistan was not liable to pay any penalty on this account as Iran had also not yet completed its segment of the pipeline.
Further elaborating, the minister said, that there were reports that around 250 kilometer pipeline on Iranian side was still pending.
Meanwhile Minister of State for Petroleum and Natural Resources Jam Kamal informed the Senate that the first five shipments of LNG were imported by PSO from the State of Qatar for the Gas companies and fertilizer sector customers.
He said the prices of petrol and diesel had decreased about 14% in International (Arab Gulf) market while in the country; the prices of same products were also reduced by 4 percent.
He said it was the responsibility of the OGRA to determine the price petroleum products.
He said exploration blocks were awarded to exploration and production companies for initial period of three years on the basis of firm work commitment.
He said that the companies were also required to fulfill their financial obligations during the period including rental, social welfare, training fund, marine research fee and production bonus.
The companies were also bound to give jobs to the locals, the minister said.
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