TAPI gas line: GSPA targeted to be finalised by July 31: National Assembly told

The National Assembly was informed on Wednesday that Gas Sales and Purchase Agreement for Turkmenistan-Afghanistan-Pakistan-India (TAPI) is under negotiations and is targeted to be finalised by July 31, 2011.
The minister for petroleum and natural resources in a written reply told the House during question-hour that Pakistan has signed the Inter Governmental Agreement (IGA) and the Gas Pipeline Framework Agreement (GPFA) for TAPI project on December 11, 2010.
He said that TAPI parties have targeted completion of the project implementation and first gas flow by 2016. The minister told the House that a consortium would be formed with the option of equity participation from the member countries for the project financing, construction and implementation.
He said details of the project financing and role of international financial institutions will be firmed up after formation of the consortium. However, Asian Development Bank (ADB) is acting as the co-ordinator of the project and has funded the initial and updated project pre-feasibility study, the minister said, adding that ADB is also likely to provide financing for project implementation. He said the project was estimated to cost $7.6 billion in 2008 but it will be firmed up after actual tendering of material and equipment.
To a question, the minister told the House that during the current fiscal year, so far, three oil and gas discoveries have been made in the country, namely Marker East-1 (Karak, Khyber Pakhtunkhwa), Haider Deep-1 (Mattiari, Sindh) and Tolanj X-1 (Kohat, Khyber Pakhtunkhwa). Currently these discoveries are under appraisal for reserves estimation, he added.
To another query, he told the House that under Liquefied Natural Gas (LNG) policy any party can import LNG without any government guarantee. He further said that as per the ECC decision of January 2011, the Pakistan's first LNG import project called Pakistan Mashal LNG Project is being reinitiated, which is planned to bring 3.5 million tons of LNG per annum. The project is expected to be operational in about two years, he added.
To another question, the minister said there was no proposal under consideration to revise gas loadshedding schedule, in view of closure of industries in different areas of Punjab. However, the position will be reviewed as soon as the gas demand supply position improves, he added. He said it was not true that the economic conditions of the country were deteriorating due to the loadshedding at CNG stations for two days in a week, as all vehicles operating on CNG have option to run on petrol.
Updating the House on the requirements of petrol, diesel and hi-octane in the country during last three years, the minister said the total requirement of petrol was 1,290,369 million tons, diesel 4,039,224 million tons and hi-octane 6,926 million tons. The annual production of petrol, diesel and hi-octane in the country during the year 2009-10 remained 1,337,525 million tons, 3,136,225 million tons and 11,982 million tons, respectively, he added.
Meanwhile, Minister for Communication Dr Arbab Alamgir Khan told the House that prior to commencement of construction activities on Diamer-Bhasha Dam, construction of two projects on Karakoram Highway (KKH) was essentially required. He said these two road projects would be undertaken by National Highway authority (NHA) on provision of funds by Wapda.
Minister for Environment Samina Khalid Ghurki told the House that the ratio of population was increasing but not at an alarming pace. She said the current level of population might have adverse effects on human, animal plants and tropical rain, forest and environment but the same is limited to areas of population sources and not the whole country.
The minister for defence production said that products of defence production establishments especially Pakistan Ordnance factories were popular in the Middle Easter countries, which are the prime buyers of Pakistani arms and ammunitions. The countries include Abu Dhabi, Oman, Qatar, Bahrain, UAE and other, he added.
To another question the defence minister said that the income of Rawal lounge of Benazir Bhutto International Airport (BBIAP) was Rs 58.147112 million from 2005 to March 2011.
He said Rs 3.815 million were earned in 2005, Rs 4.723 million in 2006, Rs 5.656 million in 2007, Rs 8.063 million in 2008, Rs 19.494 million in 2009 and Rs 13.203 in 2010 and Rs 3.191 during the first three months of 2011. Responding to another query, he told the House that as many as 2,070 persons were appointed in Pakistan International Airline (PIA) during the last three years (2008-10).