Pakistan seeks bids for Iran gas pipeline, despite US pressure

State agency issues tender inviting contractors interested in project for pre-qualification.


Reuters April 27, 2012

SINGAPORE: Pakistan is pushing ahead with plans to build a gas pipeline from Iran despite strong opposition from Islamabad's strategic ally Washington, according to tender documents.

State agency Inter State Gas Systems, which was set up in 1996 to oversee the development of the gas pipeline, has issued a tender inviting contractors interested in the project for pre-qualification.

"We expect that it should be about 50-60 days from the final day of submission, it will also depend on the number of applicants," a technical manager at ISGS said on condition of anonymity

"We would hope to start construction for the project by end of this year."

Another company source said the target was to see the first flow of gas from December 2016.

The project, which is estimated to cost between $1.5 to $1.8 billion, was proposed in the 1990s but has faced numerous delays. The United States has repeatedly urged Pakistan to drop the project because of its sanctions on Iran.

The document invites pre-qualification for a pipeline to transport high pressure natural gas from an off-take point near the port city of Gawadar to a gas integration point near Nawabshah.

COMMENTS (14)

Sheda_Rambo | 9 years ago | Reply

Above many Comments are employing the non-feasibility of the project due to non-availability of capital cost !!.. but no body seems to remember that out of all the major project now operational in Pakistan for how many we ourselves had the Capital cost ???? surely not even one (01).

To have an idea of the importance of project we must also see " Do we have any other alternative?" 1.is it LPG from Qatar @ 18$/unit which is more than 3 times the expensive 2.or is it LPG from Algeria ...approximate same cost ....... this is no including any transportation and storage cost after its in the country ....

these are just a few alternatives however comparing all these clearly highlights the importance of IP Gas in Pakistan's 10-25year future. Exiting from this project will surely mean suicide for Pakistan's economy, Not to mention all the Capital and Strategic pressures in the way which we must overcome.

sink the pink | 9 years ago | Reply

@Sonya: remember you are talking to children.

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