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PIPELINES FOR PEACE
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  • China to build two RLNG terminals at Gwadar
    08-Nov-2016

    ISLAMABAD: In a major development, Pakistan has managed to get the two RLNG terminals deal at Gwadar done with China. With the change of the mode from built, own, operate and transfer (Boot) to engineering procurement construction-financing (EPC-F), the country will be exposed to a mammoth saving of one billion dollars in 25 years just in the head of tolling fee.   The RLNG terminals w ...
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  • TAPI gas pipeline consortium plans roadshows in November
    15-Oct-2016

    ISLAMABAD: A long-delayed pipeline project from Turkmenistan to Pakistan and India via Afghanistan is in the final stages of financing, and investor roadshows are due to be held next month, a Pakistani official involved in the project said on Friday.   Originating at the giant Galkynysh gas field in Turkmenistan, the $10 billion TAPI (Turkmenistan, Afghanistan, Pakistan and India) pipe ...
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  • TAPI gas pipeline consortium plans investor roadshows in November
    14-Oct-2016

    A long-delayed pipeline project from Turkmenistan to Pakistan and India via Afghanistan is in the final stages of financing, and investor roadshows are due to be held next month, a Pakistani official said on Friday.   Head of Pakistan's state-owned Inter State Gas Systems (ISGS) Mobin Saulat told Reuters there was “significant progress” with the TAPI project and that in ...
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  • Management consultants for TAPI being shortlisted today
    27-Aug-2016

    Islamabad - The partner countries of Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline project are meeting today (Saturday) in United Arab Emirates (UAE), which is also the main office of project, to shortlist the companies for the project management consultants, it was learnt reliably here.   The Interstate Gas System (ISGS) has received offer for the execution of Afghanistan po ...
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  • Pakistani gas company set to emerge as key player on world energy map
    14-Aug-2016

    ISLAMABAD: Inter State Gas Systems (ISGS), a company established by the government to work on gas import projects, is striving to secure energy resources to make Pakistan self-sufficient and it is expected to emerge as a key player on the world’s energy map after regional pipeline projects are executed. Pakistan is eyeing gas imports from countries holding vast deposits and has en ...
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IRAN – PAKISTAN GAS PIPELINE (IP)

Background

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

Route map detail

Highlights

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

WayForward

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:

Project Implementation

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.
2. In phase-II, the land acquisition process will be completed and construction of the pipeline will be started once the EPC contract is finalized and financial close is achieved.
 
During the recent visit of Iranian President to Pakistan, a bilateral meeting with Minister for Petroleum of Iran was held to discuss strategy for implementation of the Project. Iran has shown its willingness to discuss the way forward at the Expert Level and prepare workable implementation plan

Socio-Economic Benefits

  • 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.