Work on IP gas pipeline launched

LAHORE:

Caretaker Federal Energy, Power and Petroleum Minister Muhammad Ali on Friday said work on the long-delayed multibillion dollar Iran-Pakistan gas pipeline had been launched.

The minister was talking to the media after inaugurating the Sui Northern Gas Pipelines Limited’s (SNGPL) first Model Customer Service Centre in Lahore.

He said 20% of the country’s natural gas reserves had decreased in comparison with last year, while the government would try to manage its load shedding in winter.

However, Ali continued that the government could not provide gas to the people at cheaper rates after purchasing it at higher prices.

“The people will have to use gas wisely,” he added.

Responding to a query about Russian oil, the minister said only one cargo had arrived on trial basis, but the problem was to refine it.

“Only the Pakistan Oil Refinery is refining 46,000 tons of oil monthly, while the demand is many times higher,” he explained.

Ali elaborated that the government was trying to engage private refineries to meet the demand.

He further said the government was working on importing more Russian oil, resolving the refinery issues, and making efforts to provide maximum relief to the people.

The minister said taxpayers were contributing only 9% to the country’s GDP -- one of the lowest in the world.

He added that the people would receive relief if there was an improvement in tax collection.
Pakistan and Iran have not been able to execute the gas pipeline project because of the longstanding US sanctions against Tehran over the latter’s alleged nuclear programme.

Iran has already built years ago its part of the pipeline. Pakistan too was required to complete the pipeline in December 2014 with planned start of gas delivery from January 1, 2015.
The two sides have already signed an agreement to extend the IP pipeline deal for five years, which will expire in March 2024.

Sources told The Express Tribune that Iran conveyed to Pakistan during recent negotiations that it wanted to further extend the deal to keep the project alive.

According to the agreed terms, one extension in the bilateral agreement was allowed but the two countries could extend it for another term to keep the project alive, the sources added.
Iranian Ambassador to Pakistan Dr Reza Amiri Moghaddam recently met the caretaker federal energy minister, where both sides discussed areas of mutual interest and promotion of brotherly relations.

According to sources, Pakistan’s energy minister assured the Iranian envoy that they would explore all options for the pipeline project.APP/Our correspondent in IslamabadNATIONAL PAGE
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