Gas pipeline project: ?Pakistan green lights 80-km segment to connect Gwadar to Iran

Gwadar Pro

Islamabad: Pakistan has given the green light to the commencement of work on a crucial 80-kilometer stretch connecting the Iranian border to Gwadar for the ambitious Iran-Pakistan Gas Pipeline project.

In a meeting here chaired by Prime Minister Anwaarul Haq Kakar, the Federal Cabinet approved the initiation of Phase-I activities for the Iran Pakistan Pipeline Project.

This decision followed a pivotal gathering of the Cabinet Committee on Energy (CCoE) on the 23rd of February, 2024, where a series of agenda items were meticulously deliberated upon and resolutions were reached.

Urgency marked the occasion, prompting the transmission of CCoE’s decisions to the Federal Cabinet for formal ratification through a circulation mechanism, as stipulated under rule 17 (1) (b) of the Rules of Business, 1973, according to a summary presented by the Cabinet Secretariat.

The imperative nature of the situation was underscored by the fact that last week, the Cabinet Committee on Energy (CCoE) had already given its nod to kickstart work on the pivotal 80 km segment from the Iranian border leading up to Gwadar, as part of the Iran Pakistan Gas Pipeline project. However, due to prevailing geopolitical dynamics, the filing of an application for a waiver of US sanctions related to the project was deferred.

At the core of this approval lay the recommendations of the Ministerial Oversight Committee (MOC) for the IP Project, which were wholeheartedly endorsed by the Cabinet Committee on Energy (CCoE).

The MOC’s advice was clear: begin work on the 80 km segment of the pipeline within Pakistan, from the country’s border up to the strategic port city of Gwadar, as the initial phase of the grand undertaking.

Led by the Inter State Gas Systems (Pvt) Ltd, the Project’s funding would be sourced through the Gas Infrastructure Development Cess (GIDC), marking a concerted effort by all relevant divisions to forge ahead with this monumental project.

The primary objective, resonating throughout these deliberations, was to ensure a steady supply of gas to the populace of Pakistan, thus directly addressing the burgeoning energy demands of the nation.

Under the blueprint for the initial phase, it was decided that the 80km segment from the Pak-Iran border to Gwadar would be the focal point, with an estimated budget of US $158 million earmarked for its realization, all to be financed through the Gas Infrastructure Development Cess (GIDC), as indicated in the official documents.

The genesis of this ambitious endeavor dates back to May 2009, when the foundational agreement for the Project was inked. Envisaging the supply of 750 MMCFD of gas over a span of 25 years from Iran’s South Pars gas field to the Pak-Iran border, this monumental project entails the laying of a 1931km pipeline network, comprising 1,150 km within Iran and 781 km within the territorial confines of Pakistan.

This milestone represents not just a pipeline, but a conduit of progress, poised to reshape the energy landscape of the region for years to come.