Gwadar-Nawabshah: Work on portion to end by December 2017

Petroleum minister says country working to complete IP gas pipeline

ISLAMABAD: Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi reiterated that construction of Gwadar-Nawabshah gas pipeline, which forms the most significant part of Iran-Pakistan (IP) gas pipeline project, would start within six months and is to be completed by December 2017.   

“The 700km pipeline is to be built by a reputable Chinese company,” said Abbasi during an interview with the Iranian News Agency. “Sanctions are still in place and investors are worried about their re-imposition due to legal issues. We are, however, working on it.”

“As soon as the sanctions are lifted, construction of Iran-Gwadar portion of the pipeline would resume. The design is ready and we just need to order the equipment.”

Abbasi further stated that the project is not an ‘alternative strategy’ and rather one of the main government strategies to facilitate natural gas (including LNG) imports to meet the rising demand. Other relevant projects include the TAPI (Turkmenistan, Afghanistan, Pakistan and India) pipeline project.

“We have requested a meeting with Iranian oil minister to inform him about the latest IP developments. We also look forward to Iran’s cooperation in the post-sanction era.”

With regards to the price of Iranian natural gas, he disclosed that the basic price has been agreed upon, under the IP contract, but the final will be mutually decided in light of the market realities, one year before the first gas flow.

“This 42-inch pipeline is dedicated to Pakistan alone and there is no room for other countries to join or rejoin the project. It doesn’t have the capacity to cater to any other country. If India or China seeks Iranian gas, new parallel pipelines will need to be built.”

As for the TAPI pipeline project, he added that the government of Turkmenistan had taken charge of building the pipeline. “Afghanistan is a part of TAPI pipeline route and security issues of this country have always been a concern. The cost of this pipeline is yet another issue,” he remarked.

Published in The Express Tribune, September 24^th, 2015.

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