Pakistan’s Ministry of Petroleum and Natural Resources said that few international sanctions on Iran including 'dollar transaction' are causing delay in execution of the much-awaited Iran-Pakistan (IP) gas pipeline project.
Pakistan government had allocated Rs 25 billion in the current fiscal year for the development of gas infrastructure across the country including the IP project.
Inter-Governmental Framework Declaration was signed between the two countries on May 24, 2009, while GSPA had reached on June 2009.
Subsequently, Pakistan issued sovereign guarantee on May 28, 2010.
Project consultant was appointed on April 11, 2011, while the design, feasibility, route survey and other formalities of the project were completed on September 8, 2012.
The 56-inch diameter pipeline will initiate from South Pars gas field Iran and end at Nawabshah covering a distance of around 1,931 kilometer with 1,150 km portion in Iran and 781 km in Pakistan.
Around 750 mmcfd gas flow in the pipeline is projected to help generate around 4,000 MW electricity.
The initial capacity of the pipeline was to be 22 billion cubic metres (780 billion cubic feet) of natural gas per year, which was expected to be raised later to 55 billion cubic metres (1.9 trillion cubic feet). However, as a bilateral project between Iran and Pakistan,the pipeline will carry only 8.7 billion cubic metres (310 billion cubic feet) of gas per year as contracted and 40 billion cubic metres (1.4 trillion cubic feet) as a maximum capacity. The pipeline has a diameter of 56 inches (1,400 mm). It is expected to cost US$7.5 billion and to be commissioned by 2013.
It is expected that gas delivered from Iran through the pipeline will cost US$11 per million British thermal unit (MMBTU) compared to $13 per MMBTU which is expected to be price of gas delivered through the proposed Trans-Afghanistan Pipeline and $18 per MMBTU of imported LNG.