The Ministry of Petroleum and Natural Resources of Pakistan is hoping to get the green light for resuming negotiations with Iran for the laying of a gas pipeline between the two countries from the Economic Co-ordination Committee (ECC). The ministry is seeking to reduce its gas import price by continuing negotiations on the Iran-Pakistan (IP) gas pipeline.
The Executive Committee of the National Economic Council (Ecnec) has approved a US$2 billion liquefied natural gas (LNG) pipeline project in Gwadar. Managing Director of Pakistan's Inter State Gas Systems (ISGS), Mobin Saulat, sis reported to have said that China has expressed interest to finance the un-built portion of the IP gas pipeline project.
He added that China Petroleum Pipeline Bureau (CPPB), which is currently engaged in the Gwadar-Nawabshah LNG terminal and pipeline project, has shown willingness to work on the remaining portion of the gas pipeline from Gwadar to the Iranian border in order to implement the IP pipeline project.
"The Chinese company has expressed the interest in building the remaining portion of the IP, it is part of overall execution plan of the IP project," he stated.
The project is likely to be executed by CPPB as part of a government-to-government arrangement. This pipeline will be stretched from Gwadar to the Iranian border to connect to the IP pipeline.
Saulat highlighted to The Express Tribune: “We are working with China Petroleum Pipeline Bureau on the Gwadar LNG pipeline and it is willing to connect remaining portion of the pipeline from Gwadar to the Iranian border.”
He also noted that Pakistan was facing gas shortage and the LNG terminal and pipeline would help ensure energy security in the country. The final construction phase of the IP pipeline was inaugurated on 11 March 2013. However, Pakistan has fallen short of constructing the 700 km part of the pipeline on its territory.
“The project will increase employment opportunities as thousands of jobs will be created in Balochistan and Sindh,” said Saulat.
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