Pakistan Issues Tenders For Iran Gas Pipeline: Report

Islamabad, April 29, IRNA -- Pakistan has issued tenders for the construction of 785 km pipeline under Iran-Pakistan gas pipeline project and the successful bidder will be bound to complete the pipeline in 2 years, a media report said Saturday. The tenders were issued after solid commitment from Tehran to extend $500 million credit line for the project, a senior official at the ministry of petroleum and natural resources was quoted as saying. As per the draft agreement for the contractor prepared by the Inter-State Gas Company, the 785 km long, 42-inch diameter pipeline will be laid in two years’ time to transport 750m to 1b cubic feet gas per day at high pressure, The News daily reported. The contractor will also install three pressure compressors in the pipeline from Pakistan-Iran border to Nawabshah district in southern Sindh province. The official said the tax exemption on import of all items and services needed to help construct the pipeline would be extended. The interested companies will be bound to submit their technical and financial bids for the project by June 8. Under the gas sales purchase agreement (GSPA), the official said, Pakistan is bound to have a first take of Iranian gas by December 2014 and in case of failure, it will have to pay $1m p/d to Iran as penalty./end