Ongoing energy projects in Pakistan

Ongoing energy projects in Pakistan
ISLAMABAD, Dec 4 (APP): The rising sun of 2018 will witness Pakistan as a country self-sufficient in energy.

Moreover, the setting sun of 2017 will see vanishing the crippling legacy of the previous years when slowly and gradually energy shortages started to hit the country.

        Now with concerted efforts of the present government,

the decades old projects - Iran-Pakistan (IP),

Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipelines and

import of Liquefied Natural Gas (LNG) are almost in practical

phase. This year has already seen LNG's import, while work on

TAPI began in December last year. Similarly, the IP project will

hopefully commence next year after amendment in the gas

sale-purchase agreement with Iran.

With extensive drilling by oil and gas E&P companies that resulted in over 90 new discoveries in just three years, the much-talked about IP, TAPI and LNG projects are considered the thirst-quenching streams for

the energy starved nation.

Secretary Ministry of Petroleum and Natural

Resources said, "The present government, was eyeing on

imported gas besides accelerating local oil and gas exploration

and production (E&P) activities to meet the ever-growing energy

needs in the country.

        Commenting on Iran-Pakistan gas pipeline project, a senior official of the Ministry told APP that the government was in the process of

negotiating amendments in the Gas Sale Purchase Agreement (GSPA)

with Iran for early implementation of the much-delayed project,

conceived in mid-1950s.

       "A draft amendment has been shared with Iran, and it

has agreed to negotiate on it along with some other amendments in

the GSPA, following which construction work on the pipeline is

expected to commence soon in collaboration with China," the

sources aware of the project updates said.

        Sharing details of the project, the sources said

Inter-Governmental Framework Declaration was signed between the

two countries on May 24, 2009, while GSPA had been agreed on June

2009.

       Subsequently, Pakistan issued sovereign guarantee on

May 28, 2010. The 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 start from South

Pars gas field in Iran and end at Nawabshah, covering a distance

of around 1,931 km with 1,150 km portion in Iran and 781 km in

Pakistan. The 750 mmcfd gas flow in the IP pipeline is projected

to help generate around 4,000 MW electricity also, along with

creating job opportunities in backward areas of Balochistan and

Sindh, the sources said.

      Commenting on TAPI project, the sources said Prime

Minister Muhammad Nawaz Sharif along with other regional leaders

performed the groundbreaking of the

Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline

project in Turkmenistan in December last.

      The groundbreaking ceremony took place near the city

of Mary in the southeastern part of the central Asian country,

close to the giant Galkynysh gas field which is meant to provide

gas for the 1,814-kilometre (1,127-mile) link.

     The $10 billion pipeline, from Turkmenistan via

Herat, Kandhar, Chaman, Quetta and Dera Gazi Khan to Multan and

onwards to India, is expected to be operational by 2019.

     A state-owned company of Turkmenistan is the

consortium for the TAPI and overseeing coordination in the

construction, financing, ownership and operation of the project.

     As per the agreement, it was prerequisite for

Pakistan, India and Afghanistan to have five per cent shares each

in the project. Turkmengaz, leader of the consortium, would have

51 per cent shares, with the rest marked for partner countries

     It is pertinent to mention here that Pakistan is

already working on laying a 42-inch diameter 700-kilometer gas

pipeline from Gwadar to Nawabshah, and a 1122-kilometer

north-south (Karchi-Lahore) gas pipeline that can be used for

supply of the both regassified LNG and imported gas under IP and

TAPI.

     On LNG import, the official said, this year

Pakistan signed a 15 year agreement with Qatar to import up to

3.75 million tonnes of LNG a year, which was being highly

appreciated by the business community as the previous governments

had been reluctant to take any practical step in this regard.

     After arrival of LNG, industries, gas-based power

units, CNG sector, fertilizer plants and especially domestic

consumers started receiving uninterrupted supply, which is not

less than of any miracle by any mean.

     A LNG-terminal is already operational at the Port

Qasim, while two more each at Gwadar and Karachi are also being

set up on priority to handle increased cargoes of the imported

commodity for onward injection in the transmission network of gas

companies - Sui Northern Gas Pipeline Limited and Sui Southern

Gas Company Limited.

     With the present government firmly resolved and

making all-out efforts to bring these projects to maximum

fruition, the sources voiced high hopes that gas shortfall

problem would be solved to maximum extent within remaining period

of the government.