Iran-pakistan Gas Pipeline
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.