IP gas to be available by December 2014: Asim

September 4, 2012

The National Assembly was informed on Monday that work on Iran-Pakistan gas pipeline project is expected to start by December this year, while gas flow would be available by the end of December 2014. Advisor to Prime Minister on Petroleum and Natural Resources Dr Asim Hussain made these remarks in a written reply to the House, saying that currently the government was pursing two projects for the import of natural gas – Iran-Pakistan (IP) gas pipeline project and Turkmenistan-Afghanistan-Pakistan-India (TAPI) project.

Updating the House on the IP gas pipeline project, he said gas was to be supplied from Iran”s South Pars gas field and delivered at the Pak-Iran border. He said the contractual gas volume was 750MMcfd and progress on the project was going on in accordance with the schedule.

As per schedule, the advisor stated, the Engineering and Project Management (E&PM) had completed a bankable feasibility study, interim Front End Engineering Design (FEED) and a route reconnaissance survey. While work on the detailed route survey and FEED was scheduled to be completed in the current month, he added. He further said the pre-award activities (documentation) for the procurement of Long Lead Items (LLIs) such as line pipe and compressor had been started on the IP project and a response for EoIs for Engineering, Procurement and Construction (EPC) had been received from the interested parties and were being scrutinised.

Responding to a supplementary question, Parliamentary Secretary for Petroleum and Natural Resources Shahnaz Sheikh told the House that financing and implementation of the IP project was however‚ becoming increasingly challenging due to geo-political situation. According to her, Pakistan is making all possible efforts towards completing the project on time. About TAPI, the advisor stated that the project aimed at brining 3.2 Bcfd natural gas from Yoloten-Osman and adjacent gas fields in Turkmenistan to Afghanistan (500 MMcfd), Pakistan (1,325 MMcfd) and India (1,325 MMcfd). He told the House that construction and commissioning of the project was targeted to be completed by 2017.

He further said that Turkmenistan-Pakistan and Turkmenistan-India Bilateral Gas Sales and Purchase Agreements (GSPAs) had been signed on May 23, 2012 by heads of the respective commercial entities. On the same day, he added, Afghanistan and Turkmenistan signed a memorandum of understanding (MoU) on long-term co-operation in gas sector with a resolve to finalise the bilateral GSPA as soon as possible.

Meanwhile, Minister for Science and Technology Changez Khan Jamali told the House that as many as 25,000 biogas plants would be installed in the country after successful demonstration of 4000 plants. He further said that there was also a proposal for large scale utilisation of solar photovoltaic and solar thermal energy system. He said Pakistan Council of Renewable Energy Technologies (PCRET) was in the upgradation process to produce Silicon Solar Cells and Modules up to 80 kilowatt annual capacity. Minister for Defence Syed Naveed Qamar told the House that PIA envisaged replacement of Boeing 737-300‚ Airbus A310-300 and Boeing 747-400 with fuel-efficient aircraft.