Iran-Pakistan (IP) gas pipeline project was conceived in early nineties. The gas is to be supplied from Iran’s South Pars gas field and delivered at Pak-Iran border, near Gawadar. The project is being implemented on a segmented approach whereby each country shall be responsible for construction of pipeline in the respective territory.
The pipeline will start from the onshore gas processing facility at Assaluyeh in Iran, to traverse a distance of 1,150 km upto the Iran-Pakistan border, which will be built and operated by Iran. Iran has already completed a 900-km portion of 56-inch diameter pipeline from Assaluyeh to Iran Shehr. The remaining 250 km upto the Pakistan border is under design, and is expected to be completed in two 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 781 KM.
Intergovernmental Framework Declaration (IGFD) on the project was signed by President of Pakistan and Iranian President in May 2009 for support of the project for early implementation by respective governments.
Subsequently respective entities entered into the Gas Sale and Purchase Agreement (GSPA) on 5th June 2009, which has become effective on 13th June 2010 after completion of required Conditions Precedents.
Route map detail
A glance at the IP project highlights:
Source Reserves: South Pars in Iran
Distance upto Iran-Pak Border: 1,150 km
Pakistan Segment Distance: 781 km
Gas Volume: 750 MMcfd
Optimum Pipeline Configuration: 42” inch
Status Of Agreement
The lists of agreements signed between the two respective sides are:
Inter Governmental Framework Declaration (IGFD) 24th May 2009
signed by both the Presidents
Signed Gas Sales and Purchase Agreement (GSPA) 5th June 2009
Sovereign Guarantee issued by Govt. of Pakistan 28th May 2010
(on behalf of ISGS performance)
IP GSPA Effective Date 13th June 2010
Since its inception, the IP project has come up a long way, however the current geo-political situation is a challenge.. The status of this project including the socio economic benefits are as follows:
1. Phase-I of the project has been completed. During Phase-I
- The Engineering & Project Management (E&PM), appointed in April 2011, has completed the:
o Bankable Feasibility Study
o Front End Engineering Design (FEED)
o Route Reconnaissance and Detailed Route Survey (DRS)
o Social Environmental impact Assessment (SEIA)
- Work on Installation of concrete markers on Right of Way has been completed.
The land acquisition process under the Land Acquisition Act, 1894 and Pre-award activities for procurement of Long Lead Items (LLI’s) has been started.
- It was concluded that imported natural gas remains the cheapest and most suitable fuel for power generation.
- The project will support around 4,000 MW power generation capacity, which will help in overcoming the crippling power shortage crisis.
- The construction of pipeline will also create job opportunities in backward areas of Balochistan and Sindh.
- The project shall help a great deal in meeting the energy requirements of the country’s economy.