Govt losing interest in IP gas pipeline project
ABDUL RASHEED AZAD
ISLAMABAD: There appears to be a visible decline in government interest in the Iran Pakistan (IP) gas pipeline project due to mounting pressure by the United States, according to officials privy to the deliberations related to the project.
The Petroleum Ministry had planned a visit of Minister for Petroleum and Natural Resources Dr Asim Hussain to Iran mid March but now the Ministry has postponed indefinitely the visit after the World Bank approved a $ 1.09 billion loan for Pakistan on March 20.
The IP is planned to be laid along the Balochistan coastline up to Nawabshah, Sindh, from where it will be linked to the national gas transmission network. Pakistan, as per the project documents committed to obtaining 750 Million Cubic Feet per Day (MMCFD) from the IP gas pipeline. The feed and feasibility report is scheduled to be completed by June, 2012. The World Bank has approved $840 million for the Tarbela-IV Extension Hydropower Project and $250 million for the Punjab Irrigated Agriculture Productivity Improvement Programme Project. The Tarbela extension project will add a power generation capacity of 1,410 megawatts, and the Punjab agriculture project is geared towards maximizing water use efficiency for increased yield per unit of water.
However, according to an official of National Engineering Service Pakistan (NESPAK), who is working on the IP project, the government has not yet indicated it would defer the IP project. He added NESPAK and ILF Germany are still working on the project and the Inter State Gas System, the state run organization responsible for completing IP and Turkmenistan-Afghanistan-Pakistan-India gas pipeline project, recently deputed two additional mid level officials in Lahore to enhance the pace of work at the IP project.
He said that due to mounting US pressure the government may delay the tendering of the project, adding that there is no delay on the part of the NESPAK and ILF.
Petroleum Ministry officials told Business Recorder that the Minister was due to visit Iran after his recently concluded Canadian visit, but he went to London instead while Secretary Petroleum Ministry is currently visiting India.
Pakistan is facing a serious energy crisis and the government during past four years has been unable to deal with the energy crisis, which according to World Bank has badly damaged the economy. According to World Bank widespread load-shedding is disrupting the lives of ordinary Pakistanis and the economic impact of energy shortages is estimated at upward of 2 percent of GDP.
According to official estimates, gas shortfalls are estimated to reach 2.5 BCFD in 2014-15, 3 BCFD in 2015-16 and 3.5 BCFD in 2016-17. The gap is estimated to peak at 5 BCFD by 2020-21, unless major discoveries and field developments are made in the coming years.