Pakistan would start construction of the pipeline in its territory despite foreign, domestic pressures, Petroleum Minister Dr Asim Hussain said.
He said: “We will start the project soon with the help of Iran as they have committed to provide $500 million for the project, with some technical support” , Iran’s SHANA news agency reported.
He went on to say that, Punjab’s industries are facing the energy crisis.
The Pakistani official also stated that the project would help the country overcome energy shortage in various states and improve its industry.
“Pakistan’s total gas consumption is 8 billion cubic feet per day, whereas our total production is half – only four bcfd” , he said, adding that the shortfall will be bridged in the coming years by drilling of new wells, liquefied natural gas (LNG) imports and completion of the IP gas pipeline project.
In addition, it is planned Iranian and Pakistani companies form a joint venture for completion of the pipeline.
Under a contract between the two countries, Iran will export annually 7.8 billion cubic meters of gas to the neighboring country as of March 2014.
Pakistan will construct a 700km-long pipeline from its border while Iran would build a 300km long stretch of the pipeline from Iranshahr to the Pakistani border.
[mappress] LNG World News Staff, December 27, 2012