Pakistani FM: Iran-Pakistan Gas Pipeline To Be Completed On Time

Islamabad, Dec 22, IRNA - Pakistani Foreign Minister Hina Rabbani Khar said on Thursday President Asif Ali Zardari will soon visit Iran and the gas pipeline project would be completed according to the schedule. Speaking to media representatives outside the Parliament House, she said Pakistan and Iran have been enjoying good relations and the present government has further strengthened its ties with the neighboring countries. 'Pakistan is committed to buy energy from Iran because it is facing energy crisis.' Demand for natural gas in Pakistan has outstripped supply in recent years, putting existing reserves under immense pressure. The total consumption of natural gas in the country stands at 3480 MMCFD million cubic feet per day of which the power sector consumes 959 mmcfd, with 747 mmcdf being consumed in the domestic sector. Meanwhile 578 mmcfd of gas is consumed by the fertilizer industry, four mmcfd by the cement industry. While 107 mmcfd is consumed commercially. 327 mmcfd is consumed by CNG cylinders which are widely installed in locally manufactured vehicles in Pakistan. The 2700-kilometer long IPI pipeline was to supply gas for Pakistan and India which are suffering a lack of energy sources, but India has evaded talks. Last year Iran and Pakistan declared they would finalize the agreement bilaterally if India continued to be absent in the meetings. According to the project proposal, the pipeline will begin from Iran's Assalouyeh Energy Zone in the south and stretch over 1,100 km through Iran. In Pakistan, it will pass through Baluchistan and Sindh, but officials now say the route may be changed if China agrees to the project. The gas will be supplied from the South Pars field. The initial capacity of the pipeline will be 22 billion cubic meters of natural gas per annum, which is expected to be later raised to 55 billion cubic meters. It is expected to cost 7.4 dlrs billion. The Pakistani government has on many occasions reiterated its resolve to push ahead with the 1.5 dlrs billion Iran-Pakistan (IP) gas pipeline project. A special team has been set up in the Iranian oil ministry to specify the method of investment and credit line for the pipeline on Pakistan's soil./end