September 08, 2008

Iranian bank allots funds for 7th nationwide gas pipeline project

Mr Seyyed Reza Kassaeizadeh MD of National Iranian Gas Company recently said that the Central Bank of Iran had allocated USD 150 million for the completion of the 7th cross country gas pipeline.

Mr Kassaeizadeh added that 60 million cubic meters of natural gas would be transferred to the southern and southeastern areas of the country per day when the first phase of the 7th pipeline came on stream. He said that the first phase that would link Assaluyeh to Iranshahr would meet the gas need of Sistan & Baluchestan and Hormuzgan provinces and some parts of Bushehr, Fars, and Kerman provinces.

Mr Kassaeizadeh added that the pipeline would also inject natural gas into high consuming industries, power plants and cities of the provinces. He said that the 6th cross country gas transmission pipeline with an appropriation of IRR 10 trillion would become operational at the end of the current Iranian calendar year ended on March 19th 2008.

Mr Kassaeizadeh said that Iran would make a USD 90 billion investment in the gas transmission projects in its 20 Year Vision Plan. He termed as important the gas transmission sector, calling it an infrastructure and national industry. He added that “Based on the 20 Year Vision Plan, USD 130 billion will be invested, out of which USD 90 billion will be allocated to the gas transmission projects.”

According to the plan, Iran needed to lay 53,000 kilometers of transmission pipes and build 140 boosters and 35 gas pressure stations would become operational every 5 years of the 20 year period, costing USD 100 million each. He said that “At present over 25,000 kilometers of high pressure gas transmission lines and 52 boosters are working nationwide.”

He further added that to achieve the objectives of the Vision Plan, the NIGC had given top priorities to exports, imports, swap and supply of gas for different sectors including household, commercial, industrial, power plant and transportation sectors.