Pakistan on Wednesday said the construction of Iran-Pakistan gas pipeline was currently in progress and would be completed by the end of 2016 or early 2017, but the first shipment of liquefied natural gas (LNG) expected by March 31 this year would be provided to the transport sector.
Speaking at a news conference yesterday, Petroleum Minister Shahid Khaqan Abbasi said the negotiations with Iran were in progress to amend the bilateral agreement to cater for the change in gas delivery date from Dec 31, 2014 to 2016-17.
Responding to a question on penalties for delayed project implementation, the minister said penalties have not been imposed as yet by Iran and talks were still going on to amend the agreement to incorporate the new schedule.
He said it was natural for Pakistan to import gas from Iran because it was a cleaner and cheaper fuel that could be easily transported and was currently linked to cities and villages throughout the country and the industry, fertiliser and household had become dependent on gas. “So we see not just one but three or more gas pipelines coming from Iran in the future,” he said.
He added that the government considered different ways to develop the project and finally decided to build 700-kilometre Gawadar to Nawabshah pipeline coupled with an LNG terminal at Gwadar for which the government has nominated a company that has signed a protocol agreement with a Chinese firm to undertake Gwadar-Nawabshah pipeline. The remaining 70km between Gwadar to Gabd border point with Iran would be developed separately by Pakistani contractors.
He said the compressed natural gas (CNG) was an important part of the country’s energy mix and efforts were under way to revive the industry as early as possible. He said the first shipment would most probably be provided to the CNG sector.
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