Lankan Ranger
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China to finance Iran Pakistan gas pipeline
The Pakistan government selected a consortium led by IBIC of China to arrange financing of the Iran-Pakistan gas pipeline project within 12 months in a move to finish the project as soon as possible and start importing Iranian gas supplies by December 2014.
The decision was taken in a meeting of the steering committee of the economic coordination committee led by Pakistani Petroleum Minister Asim Hussain and an inter-ministerial forum led by Prime Minister Yousuf Raza Gilani.
A senior government official said the steering committee of the ECC selected a consortium led by IBIC of China and comprising Habib Bank of Pakistan after completion of the bidding process to arrange financing through equity participation and underwriting in a period of 12 months.
The petroleum ministry, said the official, was also asked by the steering committee to take up increasing the gas quantities from Iranian pipeline from existing contract of 750 million cubic feet per day (MMCFD) to 1000 MMCFD. A reduction in gas price is also sought in the light of increased quantities.
These decisions would now be submitted to the ECC and subsequently to the cabinet over the next two weeks for formal approval and implementation.
Zardari insisted that the Iranian gas is needed to provide some relief from his country's shortages. These shortages have not only caused the failure of the gas companies providing to power plants, forcing them to turn to furnace oil, which has to be imported, but have also created severe difficulties for the domestic consumer.
He said Pakistan has sped up the pace of work on the Iran-Pakistan Gas Pipeline Project.
Highly-placed diplomatic sources told the Nation on Tuesday that the project, which was likely to be completed in 2014, might be completed one year ahead of its schedule, and the gas flow would start between June and December 2013.
Pakistan Petroleum Minister Asim Hussain said all physical surveys to lay 790-kilometre pipeline into Pakistan's soil have already been completed.
"China, ICPC and Habib Bank Limited have been chosen to act as financial advisers. China has also given assurances to financially help Pakistan construct this pipeline to complete this project on war footing," The Nation quoted Hussain, as saying.
"Our dependence on Iran-Pakistan pipeline was very high and there is no other substitute at present to meet the growing demand for energy," he added.
He said the Steering Committee would grant a formal clearance to the project before the tenders are floated to already short-listed contractors.
Fars News Agency :: Pakistan Expedites Work on Gas Deal with Iran
The Pakistan government selected a consortium led by IBIC of China to arrange financing of the Iran-Pakistan gas pipeline project within 12 months in a move to finish the project as soon as possible and start importing Iranian gas supplies by December 2014.
The decision was taken in a meeting of the steering committee of the economic coordination committee led by Pakistani Petroleum Minister Asim Hussain and an inter-ministerial forum led by Prime Minister Yousuf Raza Gilani.
A senior government official said the steering committee of the ECC selected a consortium led by IBIC of China and comprising Habib Bank of Pakistan after completion of the bidding process to arrange financing through equity participation and underwriting in a period of 12 months.
The petroleum ministry, said the official, was also asked by the steering committee to take up increasing the gas quantities from Iranian pipeline from existing contract of 750 million cubic feet per day (MMCFD) to 1000 MMCFD. A reduction in gas price is also sought in the light of increased quantities.
These decisions would now be submitted to the ECC and subsequently to the cabinet over the next two weeks for formal approval and implementation.
Zardari insisted that the Iranian gas is needed to provide some relief from his country's shortages. These shortages have not only caused the failure of the gas companies providing to power plants, forcing them to turn to furnace oil, which has to be imported, but have also created severe difficulties for the domestic consumer.
He said Pakistan has sped up the pace of work on the Iran-Pakistan Gas Pipeline Project.
Highly-placed diplomatic sources told the Nation on Tuesday that the project, which was likely to be completed in 2014, might be completed one year ahead of its schedule, and the gas flow would start between June and December 2013.
Pakistan Petroleum Minister Asim Hussain said all physical surveys to lay 790-kilometre pipeline into Pakistan's soil have already been completed.
"China, ICPC and Habib Bank Limited have been chosen to act as financial advisers. China has also given assurances to financially help Pakistan construct this pipeline to complete this project on war footing," The Nation quoted Hussain, as saying.
"Our dependence on Iran-Pakistan pipeline was very high and there is no other substitute at present to meet the growing demand for energy," he added.
He said the Steering Committee would grant a formal clearance to the project before the tenders are floated to already short-listed contractors.
Fars News Agency :: Pakistan Expedites Work on Gas Deal with Iran
