Balochistan’s share: Government to negotiate Tehran gas deal for Gwadar

Iran to be approached for import under IP project.

ISLAMABAD:

As the federal government expresses its inability to allocate gas to Balochistan from current committed supplies from Iran under Iran-Pakistan (IP) gas pipeline project, it has decided to seek additional supplies of 250 million cubic feet gas per day (mmcfd) from Tehran to meet requirements of industrial estates at Gwadar Port.

The federal government will negotiate with Iran to extend gas import volume from the existing 750 million cubic feet gas per day (mmcfd) to one billion cubic feet gas per day (bcfd) to meet the requirements of Balochistan at Gwadar Port for industrial estates.

Balochistan Chief Minister Nawab Mohammad Aslam Raisani reiterated its demand of 250 mmcfd gas allocation out of supplies under IP gas pipeline project to meet requirements of industrial estates at Gwadar in a meeting held with Secretary, Petroleum and Natural Resources Muhammad Ejaz Chaudhry here in Islamabad on Monday. Sources told The Express Tribune that Raisani said that Balochistan required 250 mmcfd gas for industrial estates at

Gwadar Port and therefore gas should be allocated under the IP gas pipeline project.

When contacted, Secretary Petroleum Ijaz Chaudhry said that Iran had already expressed its desire to provide 250 mmcfd of additional gas that could be used for industrial estates at Gwadar Port. He maintained that the Ministry of Petroleum had already moved a summary to the Economic Coordination Committee (ECC) of the Cabinet in 2010 seeking approval for import of this enhanced volume.

“I have asked the Baluchistan chief minister to work out pricing relating to gas imported from Iran,” Ijaz Chaudhry said.

He also maintained that Balochistan wanted to set up an energy company on the patter of Oil and Gas Development Company Limited (OGDCL). “We have assured Balochistan of help in setting up such a company to carry out oil and gas exploration projects,” he added.

An energy expert said that the government should meet

Balochistan’s demand to allocate gas under the IP pipeline project that would boost economic activities in Gwader.

“The imported gas from Iran would not be sufficient to bridge the gas shortfall, so the government should expedite local oil and gas exploration activities,” he said, adding that import of Liquefied Natural Gas (LNG) will also help overcome the energy crisis.

Meanwhile in a statement issue here, Secretary, Petroleum and Natural Resources apprised Chief Minister Baluchistan regarding status of various oil and gas development projects being implemented by the federal government in Balochistan. The Aghaz-e-Huqooqe Balochistan package announced by the government was also discussed and the ministry assured the chief minister that it would facilitate the provincial government in providing employment opportunities to the locals in various oil and gas projects.

Raisani was also updated on the progress made in the IP gas pipeline project and the chief minister assured that the government of Balochistan would facilitate in land acquisition for the project. Moreover, Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline project also figured in the discussion.

Published in The Express Tribune, November 22^nd, 2011.