Pak-Iran gas pipeline: ILF Germany, Nespak begin working on feasibility

The National Engineering Services Pakistan (Nespak) and ILF Germany have started working on the feasibility study of Iran-Pakistan Gas Pipeline Project, which is scheduled for completion by the end of 2012, it has been learned. A senior official at the Petroleum Ministry told Business Recorder here on Friday that Nespak and ILF Germany in a detailed meeting a few weeks back finalised the strategy for starting the feasibility study of the Iran-Pakistan Gas Pipeline Project.
The meeting was attended by six experts from ILF Germany and 10 experts from Nespak. ILF Germany team was led by Project Manager Werner Kainz and Nespak team was led by Project Manager Yawer S Ansari. The discussions covered various studies to be carried out like Geo-Hazard, Seismicity, Geotechnical Investigations, Environmental and Social impacts of the project, land-use mapping, GIS, Hydrological studies etc. The Ministry of Petroleum on May 28 has given the green signal to Nespak to initiate work on the feasibility study of Pakistan's section of the pipeline from the border with Iran to district Nawabshah of Sindh.
Pakistan has settled all issues with the Iranian authorities, including gas sale and purchase agreement (GSPA) and third-party certification for uninterrupted supply of gas from the source field to Pakistan for 30 years. "It is time to act swiftly and complete the gas line as early as possible to make import of the much needed gas from Iran practically possible," sources added.
Pakistan has to construct about 700-km pipeline from the border, passing through Makran Coastal Highway to connect it with existing gas transmission network at Nawabshah. A 42-inch diameter pipeline is planned to be built, at an estimated cost of $1.65 billion, the officials added. When contacted Secretary Petroleum Ministry Ijaz Chaudhary said that the government of Pakistan was committed to completing the IP gas pipeline project and it had allowed Nespak and ILF to undertake the feasibility study. He said that on the directions of Petroleum Ministry both the companies have started working on the feasibility study.
Ijaz chaudhary said "we are comfortable as after continuous effort for years, IP gas line is now going to enter into practical phase which would help Pakistan get gas from Iran to meet its rising energy shortfall". He said that Pakistan is currently facing a severe energy shortage and IP Gas Pipeline project is the only feasible energy source at this time.
The project is crucial for Pakistan to avert a growing energy crisis. The project would help generate around 5,000 megawatts of electricity, which is equivalent to present peak shortage of power in the country. The energy crisis in Pakistan has resulted in the closure of various industrial units across the country, especially in Punjab.
The Iran-Pakistan-India (IPI) gas pipeline project initially was conceived in early nineties. However, the project could not take off for various reasons, including Indian concerns on pipeline security and Iranian indecisiveness on certain issues like gas pricing and transit tariff. Analysts argue that US opposition to this pipeline has also been a major factor for delays in its construction. This pressure, they add, remains and hence the construction of the pipeline is still not a certainty.