The Iran and Pakistan gas pipeline projects have attracted global investor’s technical experts eyeing to participate in this economically lucrative energy project.
Informed sources said that in this respect Abu Dhabi state run company International Petroleum Investment and China National Petroleum Corporation have all shown interest in the project to construct an Iran Pakistan gas pipeline.
Russian gas export monopoly Gazprom may fund and help build the 780 kilometer Iran and Pakistan gas pipeline. Pakistan plans to borrow USD 300 million from local banks to build a pipeline that will carry natural gas from Iran in order to resolve its serious energy crisis while local state owned companies will provide about USD 210 million in equity for the USD 1.3 billion pipeline
Pakistan may approach foreign companies including OAO Gazprom, International Petroleum Investment Company and China National Petroleum Corporation for the rest of the financing. Sources were of view that the local funding is crucial for the project because of pressure on Western banks and international agencies to isolate Iran.
Acute fuel shortages persisting for quite a few years have forced the government to ration supplies, cutting power for as much as half the day in major cities yet the bill for electricity consumption were highly inflated not less than two months consumption.
It may be mentioned that under an accord signed in June 2010, Iran will provide about 21.5 million cubic meters of gas a day to Pakistan for 25 years. The deal can be extended by 5 years and volumes may rise to 30 million cubic meters a day. Pakistan’s gas shortfall is forecast to reach 2.22 billion cubic feet a day in the fiscal year that began July 1, according to government data.
The shortage has forced the government to ration supplies to cars that run on compressed natural gas, while the biggest cities have faced blackouts for as long as 12 hours a day. Last year, 53% of Pakistan’s energy came from natural gas, 30 percent from oil and the rest from coal, nuclear and hydropower. Pakistan produced 39.5 billion cubic meters of gas in 2010 or 3.8 billion cubic feet a day.
The Iran and Pakistan gas pipeline is a delayed project lingering on for over a decade but the pressures from West especially the US this badly needed project in the face of ever deteriorating energy situation in Pakistan the US pressures would not allow to accomplish this vital projects unless normalcy returns in US Iran relationship.
(Sourced from Pakistan Observer)
