Pakistan will seek assistance from China to import 750 mmcfd to one billion cubic feet gas per day (bcfd) from Iran to meet its domestic demand under Iran-Pakistan (IP) gas pipeline project. "Government will seek assistance from China for 32 projects in different sectors and Pak-China Energy Group will meet next month to discuss these projects," Secretary Petroleum Imtiaz Qazi said while addressing a press conference here on Friday. Qazi said.
that China had also been asked to set up an oil refinery at Gwader. Secretary Petroleum said that Public Procurement Regulatory Authority (PPRA) rules were followed in hiring consultant for the IP gas pipeline project. Managing Director (MD) Inter-state Gas Systems (ISGS) Hilal A Raza said that Pakistan and Iran had signed sovereign guarantee on IP gas pipeline project and both sides will make a move forward on the project as per commitment.
"Government will seek financing from international as well as local market to carry out the IP gas pipeline project after completion of feasibility report," he said and dispelled the impression that IP gas pipeline project had been put on backburner after resumption of talks on Turkmenistan-Afghanistan-Pakistan-Iran (TAPI) gas pipeline project.
"Government is to follow 'take or pay' regarding penalty on IP project due to delay and first penalty would be applicable if Pakistan fails in receiving gas till 31 December 2014 under the agreement," he said adding that Pakistan will have to pay guarantee equal to amount of 750 mmcfd gas based on agreement that amounts to $7 to $8 million per day.
Replying to a question about possible UN sanctions on Iran, he said that despite United States (US) sanctions imposed on Iran, Iran was importing gas from Turkmenistan to supply gas to Turkey. "UN sanctions will be political issue rather than technical one," he added. Hila said that according to estimates of gas utilities, constrained demand of gas will stand at 8 bcfd against local supply of 2 bcfd by 2020.At present constrained demand is 6 bcfd against supply of 4 bcfd.
"Pakistan will have gas supply of 1.3 bcfd under TAPI project, 0.75 bcfd under IP gas pipeline project to be extended in volume to one bcfd and 2 bcfd under LNG projects," he maintained. Responding to question about imposition of Reformed General Sales Tax (RGST) on consultant services-Joint Venture (JV) of ILF and Nespak, he said "RGST could not be imposed on services of consultant," and added "consultant will walkout if RGST is imposed after signing the contract that would escalate the cost."
He said that the seller had the right to terminate the contract and claim damages if there would be delay in route survey, social environmental impact study, technical feasibility study and engineering designs under IP gas pipeline project. Managing Director (MD) Sui Northern Gas Pipeline Limited (SNGPL) Rasheed Lon said that gas utilities had not participated in bidding for consultancy contract for the construction of pipeline. "97 percent work relates to construction and therefore we will participate in construction work of IP gas pipeline," Lon added.