ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet on Thursday approved construction of 700km Gwadar-Nawabshah pipeline to transport liquefied natural gas (LNG). The pipeline would also facilitate Iran-Pakistan pipeline project if international sanctions on Tehran go.
The meeting presided over by Finance Minister Ishaq Dar approved the Gwadar-Nawabshah LNG Terminal and Pipeline Project under which a 700km pipeline of 42-inch diameter would be laid along with two compressor stations.
The terminal will have the capacity to handle up to 500 million cubic feet per day (mmcfd) of gas.
Inter State Gas Systems (Pvt) Limited (ISGS) will be authorised to execute the project. The committee also directed the Ministry of Petroleum and Natural Resources to finalise the funding plan, preferably on a government-to-government basis; or build, operate and transfer; or build, own, operate basis.
According to Petroleum Minister Shahid Khaqan Abbasi, the government would lay the pipeline “as an alternate plan” in view of international sanctions working against Iran-Pakistan gas pipeline.
After the completion of Gwadar-to-Nawabshah pipeline, only about 70km of pipeline segment between Gwadar and Iranian border would be left which could be constructed immediately whenever international sanctions are lifted against Tehran.
He said this plan was commercially viable and Japan, Russia and China had taken keen interest to participate in this project.
The ISGS had been directed to complete tendering and agreement signing process within two months so that the pipeline was ready by November 2015.