ISLAMABAD
Experts have recommended the government to increase the diameter of Iran-Pakistan gas pipeline from 42 inches to 56 inches, which will enhance the gas flow by about 70 percent.
“In a meeting with the Inter State Gas Systems (Pvt) Limited officials, I have proposed them to increase the diameter of the pipeline as only by paying a little extra amount country can get almost double gas,” said former secretary Petroleum and Natural Resources Gulfaraz Ahmed while talking with The Nation. He said the increase in pipe diameter will enhance the project cost only by 10 to 15 percent but it will provide a lot extra cheap gas. He said that the decision of increasing the diameter at this stage will not cause any delay in the project.
In the Iranian territory the diameter of pipe is 56 inches but in Pakistan the pipeline will be 42 inches.
He said Pakistan current gas shortfall is about 3000 mmcfd and Iranian gas will fill the gap to some extent. But one pipeline or Liquefied Natural Gas (LNG) import is not enough to fulfill the energy demand of the country he said, adding that Pakistan will need couple of pipelines from Iran in next 10 years, he added. Replying a question about the prices difference between LNG and Iranian gas, Gulfaraz said that luckily these days the prices of crude oil are down therefore LNG prices are roaming around $ 4 per mmcfd. “Few years back the LNG prices touched 17 and 18 dollars per mmcfd in the international market,” he added.
If the government is serious it can complete its 750 km pipeline within next two and a half years while it will take one and a half year for the Iranians to lay down 250 km pipeline on its side, former secretary petroleum said.
The commissioning of the Iran-Pakistan gas pipeline will reduce reliance on the import of expensive oil and will save money, he said. Former secretary said that the price of crude oil is down in international market and it is good time for Pakistan to immediately start work on the project.
Raziuddin, former chief of fuel section vision 2025 and incumbent Chief Executive Officer (CEO) of KP-OGCL, said that in long run Iranian gas will be cheaper than the imported LNG therefore the policy makers should plan to import maximum gas from the Iran.
He said in vision 2025 the government has included two pipelines, from Iran, which will be developed in phases. In the beginning 750 mmcfd will be imported through IP pipeline which will be enhanced to 1000 mmcfd, he said, adding that another pipeline will increase the import to 2000 mmcfd.
Raziuddin also supported Gulfaraz view and said that the government must increase the diameter of the Iran Pakistan pipeline. He said that by just adding few more inches to the pipeline country can save a lot of money. “Increasing the diameter of the pipeline by just 14 inches the gas supply can be increased by 70 percent and it will incur only $300 million extra expenses, Raziuddin said.
He said that Iran-Pakistan gas pipeline is the most feasible of all the projects and the government should start work on it immediately. The termination all nuclear-related economic sanctions on Iran by US, European Union has created a hope for Pakistan to quench its thirst for the cheap energy and the government is required to fully and immediately exploit the situations, emerged of Iran nuclear deal. After the indigenous energy resources, he said, the Iranian gas pipeline is the second cheapest source of energy.
The federal minister for petroleum and natural resource had earlier told in a press conference that as soon sanctions on Iran were lifted they will start work on the project. “Connection of the pipeline with Iran is our international commitment and we have to fulfill it” the minister said, adding that Pakistan never stopped work on this project but sanctions against Iran were a major hurdle in its execution.
First conceived in early nineties, the pipeline will transport gas from Iran to Pakistan. The gas is to be supplied from Iran’s South Pars gas field and delivered at Pak-Iran border, near Gawadar. According the agreement each country shall be responsible for construction of pipeline in the respective territory. The distance of pipelines in Iranian territory is 1150km and it has already completed a 900-km portion of 56-inch diameter pipeline from Assaluyeh to Shehr. The remaining 250 km up to the Pakistan border is under design, and is expected to be completed in one and a half years time. The Pakistan section of the pipeline is to be laid close to the Makran costal highway from Iran-Pakistan border up to Pakistan off-take point at Nawabshah covering a distance of over 781km.
Under the IP contract, Pakistan is bound to pay a penalty as it failed to complete the construction of its portion of the pipeline by December 31 2014. However work on the project was halted because of international embargoes on Iran.
The pipeline, to be completed in two years, would eventually supply Pakistan with enough gas, 750 mmcfd, to fuel 4,500 megawatts of electricity generation, which is country’s current electricity shortfall.
Besides, working on Iran-Pakistan pipeline, the government is also planning to import 500 million cubic feet per day (mmcfd) of LNG from Qatar which will ultimately reach to 2000 mmcfd in coming three years.