Economic Coordination Committee (ECC) in its meeting held on 2nd October, 2014 and subsequently Cabinet in its meeting held on 23rd February, 2015 approved the "Gwadar-Nawabshah LNG Terminal and Pipeline Project" in principle as an Alternative Strategy of Iran-Pakistan Gas Pipeline Project. Authorized ISGS to execute the implementation of the project and directed the Ministry of Petroleum & Natural Resources to finalize funding plan, preferably on Government to Government (G to G) arrangement or BOT basis.
Advantages of the Alternative Strategy
Gwadar LNG facility not only plays a crucial role in combating the acute gas shortage during the period of sanctions on Iran but will also make significant contribution in reducing supply/demand gap even after completion of Phase 2.
LNG facility at Gwadar will provide the needed flexibility and being an alternate source to Iran gas, will ensure security of supply of gas.
It can serve as a main trunk line to supply not only imported LNG but also indigenous gas produced in mid country with maximum efficiency and state of the art monitoring system (resulting in elimination of losses). It can be extended to mid country Multan, to substitute as main trunk line for supply of Natural Gas to SNGPL network.
Building of Gwadar-Nawabshah pipeline is the first step towards establishing an energy corridor. The LNG facility at Gwadar could cater for the needs of the public and private sector.
Route map detail
This Project comprises the construction of following facilities:
The timelines for project completion and first gas flow is targeted to be end of December 2017.
Status Of Agreement
- The framework Agreement is also signed on 20th April 2015 between the National Energy Administration (NEA) and Ministry of Petroleum and Natural Resources (MPNR)
- CPP and ISGS is currently engaged in contractual negotiations.