TAPI gas will be cheaper than imported LNG, NA panel told

Official says gas prices could increase in next few months

ISLAMABAD:

The petroleum ministry informed a National Assembly Standing Committee on Thursday that the Turkmenistan-Afghanistan-Pakistan-India (TAPI) project would be a very economical proposition for Pakistan as the gas supplied through it would be cheaper than the imported liquefied natural gas (LNG).

National Assembly Standing Committee on Foreign Affairs, which met here with Ehsanullah Tiwana in the chair, was also informed that the gas price in the country could rise because of an increase in the international prices over the next three months.

The petroleum ministry gave a briefing to the committee on the progress on the Iran-Pakistan gas pipeline, the TAPI gas pipeline and the Pak-Russia gas project.

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Petroleum Secretary Zakir Arshad told the committee that there was no progress on the Iran-Pakistan gas pipeline because of the US sanctions.

The committee members were informed that TAPI was an economical project. Arshad said that Pakistan would pay $200 million only, out of a total $10 billion project cost. In return, he added, the country would receive 1200 million cubic feet per day (mmcfd) gas.

He said that there was 800 mmcfd gas shortfall in the country. He added that the prime minister had sought a briefing on the hike in gas prices and had he directed for revising the gas tariff. Arshad said that the government was working on reducing gas prices.

The secretary cited rising circular debt as a big issue. He said that talks with the International Monetary Fund (IMF) were underway on the circular debt issue. He said that gas theft was another factor in the increase of gas prices and a short supply.