Future of multi billions dollar strategic gas pipeline in limbo

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Future of multi billions dollar strategic gas pipeline in limbo

ISLAMABAD -

The future of the multi billion dollars strategic gas pipeline is in doldrums, it has been revealed.

As per the media report, the Petroleum Division is going to seek government’s approval for an integrated strategy to revive abandoned multibillion-dollar gas pipeline projects in a bid to address energy shortages.

Petroleum Division was set to present three options to the Economic Coordination Committee (ECC) to decide the fate of old gas pipeline projects in order to ensure energy security in the country, Tribune has reported.

Under the first option, the Petroleum Division wants the ECC to revive the Gwadar-Nawabshah LNG Terminal and Pipeline project under the integrated strategy for gas import and infrastructure. The project will provide infrastructure and liquefied natural gas (LNG) supplies. It may also be extended to the Iranian border in future for gas purchases from the Gulf country.

Under the second option, the Petroleum Division will seek approval for phase-wise capacity utilisation of the North-South gas pipeline project in case it is considered a standalone project, which will be connected with upcoming private-sector LNG terminals at Karachi port under third-party access rules.

Under the third option, the Petroleum Division is set to ask the ECC to either defer or drop the North-South gas pipeline project.

Sources recalled that during the previous Pakistan Muslim League-Nawaz (PML-N) government, the ECC had approved on October 2, 2014 implementation of the Gwadar-Nawabshah LNG Terminal and Pipeline project as an alternative to the Iran-Pakistan pipeline project, which had been stalled due to international sanctions on Tehran.