Iran-pak­istan Gas Pipe­line

Southasia - - Briefing -

Dur­ing its re­cent visit to Pak­istan, the Ira­nian del­e­ga­tion be­gan talks with Pak­istani of­fi­cials on the en­gi­neer­ing, pro­cure­ment and con­struc­tion (EPC) con­tract for the $1.5 bil­lion gas pipe­line. The del­e­ga­tion, headed by the Deputy Chief of the Tad­bir Com­pany, dis­cussed the fu­ture of the gas pipe­line with Pak­istani of­fi­cials from the Min­istry of Pe­tro­leum and Re­sources and the In­ter State Gas Sys­tems. Ac­cord­ing to the plan, Iran will con­struct two kilo­me­ters of pipe­line per day, hence com­plet­ing the 781 kilo­me­tre long pipe­line in 16 months.

The talks helped the two coun­tries mod­ify the scope and na­ture of work, terms of ref­er­ence, ex­penses in­curred by both coun­tries and other key as­pects of the agree­ment. The pipe­line will run from Gabd, an area near the Pak­istanIran bor­der to Nawab­shah in Sindh. As per the sched­ule, Iran will com­plete the con­struc­tion work by De­cem­ber 2014. The pipe­line will bring nearly 750 mil­lion cu­bic feet gas per day; the vol­ume of gas flow will be in­creased to al­most 1 bil­lion cu­bic feet per day. Pak­istan will in­ject the in­com­ing gas into its power sec­tor to gen­er­ate nearly 4,000MW of elec­tric­ity. It is ex­pected that Pak­istan will save nearly $1 bil­lion per year, as the gas will re­place costly fur­nace oil.

Dur­ing the talks, both sides also agreed upon the fi­nances in­volved in the gas pipe­line project and dis­cussed the $500 mil­lion loan, which Pak­istan will re­ceive from Iran. How­ever, Pak­istan will it­self bear the re­main­ing costs.

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