Pakistan committed to IP Gas project, Senate body told
Pakistan’s Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi said that government will not let such a situation arise that Iran could imposed penalty on us in case of failure to start work on IP project.
Expressing these views in the meeting of Senate Standing Committee on Petroleum and Natural resources held under the chair of Senator Muhammad Yousaf the minister said that Pakistan is facing hindrances due to sanctions from European Union and United states.
The instruments required for the construction of pipeline are manufactured of two major companies and they are not willing to give that machinery to Pakistan. In case of expectations of international sanctions no one is ready to work on the project.
MD Inter state Gas Company limited (ISGC) informed the committee that United States has made it clear that there is no policy change from U.S. regarding IP project.
He said by the end of this month meeting would be held between Pakistan and Iran to discuss the different technical aspects of the project and to formulate the way forward.
The minister said that due to increase in gas shortfall domestic consumers are facing gas load shedding and this situation would remain for three months.
The senate body expressed concerns over MoU signed between United company of U.S. and Sui southern gas pipeline limited (SSGCL) without seeking permission from government and recommend the minister to give complete details of the MoU and to hold inquiry in this regard.
Shahid Khaqan Abbasi said that government is negotiating over price of LNG from Qatar and nothing has been finalized so far. Final decision would be to get it at cheap price. A private company after through competitive bidding would construct the LNG terminal contract duration is fifteen years. The company would collect per mmbtu charges of the gas, the minister commented.
Abbasi further appraised that from Nov 01 this year 200 mmcfd gas would be added into the system.
Federal minister alleged that last government was least bothered to safeguard the interests of common man and they were not serious to import LNG to settle the growing demand. He announced that the ministry would hold inquiry over the MoU signed in the previous tenure about LNG import between SSGCL and a U.S. company.
He made it clear that import of LNG is the only option to settle the current energy crises from the country and it can also reduce the power outages to half. If uninterrupted gas supply continued to the power plants operating on gas then power production would automatically increased, the minister said.
In the meeting senator Hamza said that political parties distributed gas connections for their political gains that lead to severe energy crises we are facing. The legislative body asked the ministry to finance the IP project through internal resources and not to get loans from banks.