Inqhilab
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September 24, 2014
ISLAMABAD: Pakistan Muslim League (Nawaz) government is considering shelving much delayed Iran-Pakistan (IP) gas pipeline project by exploring an alternate gas import plan to plug the gap between demand and supply. The plan for approval will be tabled in coming federal cabinet’s economic coordination committee (ECC) meeting.
Minister for Petroleum and Natural Resources Shahid Khaqqan Abbasi on Tuesday in an in-camera briefing said the government was mulling over an alternative plan to IP gas pipeline project. A substitute plan for the supply of gas will be presented before the ECC, the minister said.
If an alternative gas supply is not arranged then Compressed Natural Gas (CNG) stations and the industries during winters will not find continuous supply of gas, Abbasi observed. The price for gas would be altered however it would be ensured the newer rate to accommodate the ordinary citizen. He told Parliament would be approached in case Supreme Court (SC) of Pakistan would reject the appeal filed for charging the gas consumers on account of Gas Infrastructure Development Cess (GIDC).
At present, court has stopped collection of GIDC and we have approached apex court against the order of the court, He said. A bill would be tabled in the Parliament if SC did not give relief. He said around Rs 84 billion has so far been collected under GIDC from the consumers. Responding to a question, he said price of Liquefied Petroleum Gas (LPG) was being regulated and the ECC would also be approached for regulating the price of LPG.
He claimed prices of petroleum products (POL) were likely to witness cut during next month. However, consumers will not find estimated relief in next month’s POL prices due to depreciation in the value of Pak rupees against dollar. Abbasi informed about issuance of an ordinance to collect GIDC from CNG and industrial sector. Officials at Petroleum Ministry said GIDC would be added in the gas price for said sectors. They said price of CNG in region-I would find Rs 15.07 per kilogramme (kg) and Rs 13.77 per kg in region-II, while Rs 200 million cubic feet per day (mmcfd) surcharge would be levied after the imposition of GIDC on CNG and industrial, fertilizer and powers sectors.
Pakistan and Iran finalised $7.5 billion gas project dubbed as a peace pipeline to start supply of natural gas to the former from 2014. Under the gas sale and purchase agreement (GSPA), Pakistan was expected to import about 750 mmcfd with a provision to increase it to one billion cubic feet a day (bcfd). The volume of imported gas was also expected to be about 20 percent of Pakistan’s current gas production and the agreement was for a period of 25 years and renewable for another five years.
Pakistan to shelve IP gas pipeline project: petroleum minister
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what a sad news to start the day with...
