Pakistan Petroleum Min. To Visit Iran On Oct 10

Islamabad, Sept 30, IRNA – Pakistan’s Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi is to visit Iran on October 10 to discuss issues relating to Iran-Pakistan (IP) gas pipeline project, a media report said on Monday. Daily ‘Business Recorder’ reported that a senior Petroleum Ministry official told the daily that the Pakistani delegation will also deliberate with Iranian authorities on the possibility of fully financing the project. Under the accord, signed in June 2010, Iran will provide about 750 million cubic feet per day (MMCFD) to Pakistan for 25 years. The deal can be extended by five years and the volume may go up to 1 billion cubic feet per day (BCFD). We are going to Iran to renegotiate financing of Iran-Pakistan (IP) gas pipeline project and will also request Iranian authorities to extend the deadline of IP gas project from December 2014 to a mutually agreed time frame, Petroleum Ministry officials said. An official of National Engineering Services of Pakistan (Nespak) said Nespak has designed the pipeline corridor that would enable laying an extra pipeline for any other country showing an interest in becoming a partner. Within the next few months, Nespak along with its partner German company ILF would begin supervising the construction of the pipeline once it receives the go-ahead from the government, he added. German-based consultant firm ILF, National Engineering Services Pakistan (NESPAK) and Iranian construction company Tadbir are set to complete the project, which would cost $1.5 billion. The government of Iran has assured Pakistan of $500 million for the construction of pipeline. Sources said that work on the IP project has reached an advanced stage as Pakistan has already completed Interim Front End Engineering Design (FEED) of the proposed IP project. The government has imposed Gas Infrastructure Development surcharge (GIDS) on all gas consumers to finance the construction of imported gas projects like IP, Liquefied Natural Gas (LNG) and other energy projects. The government has so far collected over rs 50 billion from GIDS, which would be utilized on construction of Iran-Pakistan (IP) gas pipeline and/or other energy projects./end