Gwadar-Nawabshah pipeline, LNG terminals: All projects will be completed on time, says official

ISLAMABAD:The 700-kilometre Gwadar-Nawabshah gas pipeline and Liquefied Natural Gas (LNG) terminal projects will be completed within the given schedule, said a senior official of the Ministry of Petroleum and Natural Resources on Wednesday.

The projects will hopefully be completed by December 2017 with the financial assistance of China,” he said.

Govt seeks to negotiate Gwadar pipeline cost

“The 42-inch diameter pipeline would be laid along with two compressor stations, while the terminal at Gwadar would have the capacity to handle up to 500 million cubic feet per day (mmcfd) of gas.”

He said the $1.4 to $1.5 billion project was being executed on ‘build-operate-transfer (BOT)’ basis and the pipeline would pass through Pasni, Ormara and Hingol before reaching Nawabshah.

The Economic Coordination Committee (ECC) of the cabinet has already approved the construction of the Gwadar-Nawabshah pipeline.

In the next phase, the pipeline would be extended up to Lahore at a cost of $2 billion.

Finance ministry delays release of $300 million for Gwadar pipeline

Commenting on the Iran-Pakistan (IP) gas pipeline project, the official said the ministry was getting further approvals from the Central Development Working Party (CDWP) and Executive Committee of the National Economic Council (Ecnec) to apply for foreign funding for the laying of pipeline on the Pakistani side of the border.

As per the procedure, he said, the project needed to be approved by the CDWP and Ecnec before applying for its financing as Buyer’s Credit.

The PC-I has already been submitted for approval.

“Once the CDWP and ECNEC give their nods, the ministry would approach China through the Economic Affairs Division for financing and the Economic Coordination Committee for the constitution of a ‘price negotiation committee’ to recommend acceptance of the price proposal from China Petroleum Pipeline (project executing company).

‘IP pipeline will need at least three more years’

He said given the loss of time, the IP project timelines needed to be extended. “Pakistan is already working on the project under the alternative strategy.”

Lastly, the official hoped that Pakistan’s proposal to amend the Gas Sale Purchase Agreement would be accepted by Iran with its details sorted out by the experts group.

Published in The Express Tribune, May 12th, 2016.