Sunday, January 20, 2013 -IslamabadThe $1.2 billion Iran-Pakistan gas pipelineproject, set to be completed next year, may prove abonanzafor the hard-pressed energy sector of Pakistans economy as the initiative will supply 750 million cubic feet of gas besides helping to contribute 4000MW of electricity to the national power grid.Iran is stated to have completed 900 kilometer of work on its side while Pakistan launched its part of work last month, thus setting the stage for an ambitious undertaking which will greatly overcome Pakistans severe energy shortages.
In the prevailing energy crunch, the PPP-led coalition government decided to go ahead with theprojectdespite stiff opposition from some quarters.
However, the Pakistani government in spite of all the pressure has signed the agreement with Iran to meet its energy shortages.
President Asif Ali Zardari andIranianPresident Mahmoud Ahmadinejad signed the Inter-Governmental Framework Declaration (IGFD) ofthe IPprojectin Tehran on May 24, 2009. After signing ceremony of the Sovereign Guarantee Agreement (SGA), Pakistans then Minister for Petroleum and Natural Resources Syed Naveed Qamar signed Gas Sales and Purchase Agreement (GSPA) with Iran on June 5, 2009 through which Pakistan would import one million cubic gas per day.
The government had also appointed theEngineering&Project Managementin April 2012, to conduct route surveys on IP, who later submitted its final detailed report on theproject. Pakistan is experiencing a prolonged power crisis, low gas pressure and suspension of CompressorNatural Gas(CNG) to CNG stations adding to the problems of the masses.
Dr Asim Hussain said the government wanted to complete theprojectas soon as possible in order to overcome the looming power and gas crises. He termed theprojectbeneficial for both the countries and said, We are dependent on thisprojectas there is no other substitute at present to meet the growing energy demand. He said the government of Pakistan had started work on theprojectin December 2012, while Iran had already constructed more than 900 kilometer gas pipeline on their side.
Asim stated that after the completion of theproject, it would start supplying 750 million cubic feet gas per day. He said the implementation of theprojectshowed that Pakistan had a flexible foreign policy.
In a pressconference onthe sidelines of summit of the Group of Eight Developing Countries (D8) inIslamabadon November 22,IranianPresident Mahmoud Ahmadinejad vowed to complete the multi-billion dollarprojectwithin stipulated time.
He said the portion of pipeline onIranianside was about to complete while Iran was also extendingfinancial assistanceto Pakistan to complete theproject.
By Pakistan Observer
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