The largest Russian gas exploration company, Gazprom, has shown interest in the project of building Iran-Pakistan gas pipeline (IP). It has submitted Expression of Interest in response to Inter-State Gas Company''s invitation. According to sources in the Ministry of Petroleum and Natural Resources, Pakistan will import 750 million cubic feet of gas daily for 25 years from Iran, according to the terms of the agreement.
The pipeline will facilitate transfer of natural gas from Iran''s biggest gas field in South Pars to Pakistan through the south-western Balochistan. Sources said that due to the high cost of Iranian gas it will not be available for domestic consumers. Most of its supply will go to the industrial sector, especially for power generation. The company has also shown interest in developing Pakistan''s energy sector and will help build power generation facilities and develop gas fields.
Officials added that feasibility report is being prepared and after this process tenders would be invited for short-listing the companies so that the project could be completed in a proper manner. Pakistan on May 28 had given green signal to Nespak to initiate work on the feasibility study of Pakistan''s section of the pipeline from the Iranian border to district Nawabshah. Nespak along with ILF Germany currently has mobilised experts to undertake a reconnaissance mission preparatory to laying the Iran-Pakistan (IP) gas pipeline on Pakistan side of the border. Sources said that the team would soon return to Islamabad and submit the reconnaissance report.
Sources in the Petroleum Ministry about Gazprom said that it is among the top global natural gas exploration, production, transportation, and marketing companies. It produces about 547 billion cubic metres of natural gas a year, which is 17 percent of the world''s production. It operates Russia''s domestic gas pipeline network and delivers gas to countries across Central Asia and Europe. Gazprom relies heavily on western exports.
Sources added that President Asif Ali Zardari''s visit to Russia on May 11-13 this year played an important role in attracting Russian companies to invest in Pakistan. Experts and government officials insist early completion of the project that would effectively deal with the existing energy shortage. The project would help generate around 5,000 megawatts of electricity, which is equivalent to peak load-shedding in Pakistan, according to experts.
On the other hand ISGC has also changed the term of condition of initial EoI, and has waived off the non-refundable processing fee of $7,000. It has also extended the closing date for submitting of EoI from August 20 to September 10. Talking about the Interstate Gas System''s move to waive off $7,000 fee, the official said that to encourage foreign investors the move is a healthy step, adding so ISGC has received a few EOIs from global companies. China and Russian companies are showing great interest in the project, while German company is already working on the feasibility study of IP along with Nespak team, sources maintained.
They said that during Zardari''s visit to Russia the two countries also expressed interest in implementing projects pertaining to the creation of a system that would transmit electricity from Tajikistan to Afghanistan and Pakistan (KASA-1000) and build Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline. The $7.5 billion TAPI gas project, if completed, would be the backbone for Pakistan''s industry and economy, which at present is suffering from acute gas load-shedding and power load shedding.