The government plans to implement Iran-Pakistan (IP) gas pipeline project in 2014-15, the Annual Plan 2013-14 documents indicated. The government has indicated that it will commence work on the IP pipeline as soon as finances for the project are arranged and the issue of sanctions against Iran resolved. The Annual Plan further states that Pakistan will take further significant steps on imported gas pipeline projects, including Liquefied Natural Gas (LNG), Turkmenistan-Afghanistan-Pakistan-India (TAPI) and IP 2014-15.
It added that import of up to 200 million cubic feet per day of LNG is likely to start by December 2014. As per planned major activities on Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project, wherein the TAPI parties have already appointed Asian Development Bank (ADB) as Transaction Advisor (TA), selection of investors for the construction of the pipeline will commence.
Fast track LNG terminal project having capacity of 400-500 Million Cubic Feet per Day (MMCFD) will be pursued by Inter State Gas System (ISGS). The Elengy Terminal Pakistan Limited (ETPL) has been declared as successful bidder for setting up of LNG terminal at Port Qasim and the Sui Southern Gas Company Limited (SSGCL) management has already negotiated the LNG services agreement with EPTL. The government of Pakistan will pursue the procurement of LNG from different potential sellers, particularly from Qatar on government to government basis, Annual Plan 2014-15 reveals.
Iran and Pakistan have already made following developments on IP project: Bankable Feasibility Study (BFS) on September 2012, Front End Engineering Design (FEED), Detailed Route Survey (DRS), Social Environmental Impact Assessment (SEIA), Initialisation of Co-operation Agreement with Iran, Cabinet approval to give effectiveness to the co-operation agreement, installation of concrete markers on right of way and land acquisition, initialisation of Engineering Procurement and Construction (EPC) contract along with the financial agreement.
The estimated cost of laying the Pakistan segment of the 42" diameter IP pipeline is $1.24 billion, which will initially carry 750 MMCFD of natural gas. Under TAPI 3.2 Billion Cubic Feet per Day (BCFD) of natural gas would be imported from Turkmenistan of which Pakistan and India will receive 1.325 BCFD each while Afghanistan will receive 500 Million Cubic Feet per Day (MMCFD) gas. The estimated cost of the 56" pipeline project is around $7.6 billion.
The TAPI parties have already finalised the Transaction Advisory Services Agreement (TASA), the main task of the TA is to identify and select a world class technically competent and financially capable international company as consortium leader for the project through competitive solicitations. The plan also revealed that in 2014-15 local crude oil production will be 97,590 barrels per day - from 85,000 barrels per day in 2013-14, while the local gas production is like to decline by 300 MMCFD from 4.1 Billion Cubic Feet per Day (BCFD) to 3.8 BCFD.
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