Iranian gas will start flowing from December 2014: Dr Asim Hussain

Published: September 4, 2012

Pakistan has small reserves which are not capable of producing huge amounts of natural gas. PHOTO: PID/FILE

ISLAMABAD: It seems the recent meeting between President Asif Ali Zardari and Iran’s supreme leader Ayatollah Khamenei has done much to oil the cogs on the multi-billion dollar gas pipeline between the two neighbouring countries as the Minister for Petroleum and Natural Resources Dr Asim Hussain revealed a timeline for the construction work on the project.

Dr Hussain, in a written reply to Shiekh Salahuddin, wrote that surveys for the project are due to be completed before October 2012 and construction can start as early as December 2012. The pipeline will start supplying 750 million cubic feet of gas per day (MMCFD) starting from December 2014, he added.

Replying to a question, he said that the project is continuing as per schedule and the work on detailed route survey and the final front end engineering design is scheduled to be completed in September 2012. Adding that pre-award procurement activities of long head items such as pipelines, and compressors have already been started.

Pakistan has been pursuing the Iran-Pakistan Gas Pipeline Project and the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project to overcome the energy crisis in the country. However, pressure from the US on dealings with Iran have put projects with Pakistan’s western neighbour under a cloud.

Pakistan’s Minister for State Shahnaz Sheikh said that a cess has been imposed on petroleum product prices to collect additional revenues for the IP project. The Minister further said that TAPI would be completed by 2017. Pakistan had signed a bilateral gas sales and purchase agreement on March 23, 2012 along with the heads of the respective commercial entities for the project which would provide 3.2 Mcfd natural gas from the Yoloten/Osman and 1325 MMcfd from India.

Replying to another question, Dr Asim said that the government, after getting an approval from the Economic Coordination Council (ECC) had imposed a complete ban on company fitted CNG kits on locally manufactured vehicles. However, he added that the government had not put a ban on installing CNG kits on small vehicles.

In his reply, Dr Hussain said that the government had not yet received any proposal to lift the ban on company fitted kits for heavy vehicles, as he declared that 470,599 MT of LPG has been consumed annually for the last two years. He further informed that the annual consumption of natural gas stood around 1270200 MMCFT (340 MMCFD) and that LNG had never been imported in Pakistan.

He further wrote that the depletion of natural gas is a natural phenomenon in Pakistan that has small reserves which are not capable of producing large amounts of natural gas.

Demand for natural gas has outstripped supply in recent years, putting existing reserves under immense pressure.

The total consumption of natural gas in the country stands at 3480 MMCFD million cubic feet per day of which the power sector consumes 959 mmcfd, with 747 mmcdf being consumed in the domestic sector. Meanwhile 578 mmcfd of gas is consumed by the fertiliser industry, four mmcfd by the cement industry.  while 107 mmcfd is consumed commercially. 327 mmcfd is consumed by CNG cylinders which are widely installed in locally manufactured vehicles in Pakistan.

Reader Comments (13)

  • imran
    Sep 4, 2012 - 1:23AM

    hopefully

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  • Parvez
    Sep 4, 2012 - 1:27AM

    No harm in talking because no one really believes him.

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  • Mohammad Ali Siddiqui
    Sep 4, 2012 - 2:05AM

    Still Delhi is very far……………………………………..

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  • CrapCutter
    Sep 4, 2012 - 2:42AM

    Dr. Sahib,

    Who needs gas? Alhamdolillah after PM Rajas promise, our country is without load shedding since 2009.

    And now that we have excess electricity, why not export it to Iran?

    Regards,

    PPP-sympathiser

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  • Cautious
    Sep 4, 2012 - 3:13AM

    Yep — all you need to do is complete your engineering study, economic analysis, obtain financing, select a contractor and start to build the pipeline. Your also going to have to negotiate a deal with Balochistan so they get appropriately compensated and are guaranteed a commensurate share of the gas – your also going to have to figure out how to pacify the militants so they don’t blow the pipeline up every day. Article implies progress but it looks like all of the major hurdles are yet to be resolved.

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  • Sep 4, 2012 - 3:37AM

    total consumption of natural gas in
    the country stands at 3480 MMCFD
    million cubic feet per day

    annual consumption of natural gas
    stood around 1270200 MMCFT (340 MMCFD)

    Does anyone bother to proof read these articles? Annual consumption is lower than daily consumption?

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  • nay sayer
    Sep 4, 2012 - 3:41AM

    dr sahab who trusts ur statements really? …

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  • Imran Con
    Sep 4, 2012 - 5:54AM

    There was nothing that could have been said in Iran that changes the circumstances for past hesitation on the topic. After all, the West would probably be the one paying the costs at some point along the way. That’s not to say they have to be aware that they’re paying for it, though.
    It’s just a PR move.

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  • M.Ahmer Ali
    Sep 4, 2012 - 10:58AM

    “Iranian gas will start flowing from December 2014-Dr Asim Hussain”
    He is right on this stance because by showing this reason/stance before the nation PPP shall try its best and utmost to get votes to get the majority in National Assembly to form the next government…..

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  • Yousaf Hyat
    Sep 4, 2012 - 2:15PM

    Too little too late ,

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  • wolfie loves kulfie
    Sep 5, 2012 - 11:06AM

    but I hope Pakistan has the facilities by 2014 in operational phase to refine the crude as Iranian crude is of lower grade quality than that of Saudi or Kuwait reason is they dont have the latests modern refining facilities due to sanctions the main reason why India invested heavily in domestic refineries before it imported the Iranian crude this added cost main reason why India Scrapped the IPI oil pipeline it just did not make economic sense to import low grade crude spend more money refining it and selling the gas at lower price to the domestic market

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  • Muhammad Ahsan
    Sep 27, 2012 - 3:02PM

    ” 1270200 MMCFT (340 MMCFD)”

    Typo here. It should be 3480 MMCFD and not 340.

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  • Oct 14, 2012 - 9:10AM

    For this courage is vitalRecommend

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