ISLAMABAD: The Ministry of Petroleum and Natural Resources is awaiting approval of the Central Development Working Party (CDWP) and Executive Committee of the National Economic Council (Ecnec) to apply for foreign funding to lay a pipeline on Pakistani side under the Iran-Pakistan (IP) gas pipeline project after lifting of international sanctions on Iran, a senior official said on Thursday.
To formally apply for financing as buyer’s credit as per procedure, the PC-I of the project needs to be approved by the CDWP and Ecnec. The official said the Ministry of Foreign Affairs believes that by and large most of the sanctions on Iran had been withdrawn.
After the approval of the CDWP and Ecnec, the ministry would approach China through the Economic Affairs Division for financing the project and the Economic Coordination Committee for constitution of a price negotiation committee to recommend acceptance of the price proposal of the China Petroleum Pipeline, the project executing company.
Given the loss of time due to Force Majeure situation, he said the IP project timeline needed to be extended adding that Pakistan was already working on the project under an alternative strategy. So, he said, Pakistan’s proposal to amend the Gas Sale Purchase Agreement (GSPA) to complete the legal formalities would hopefully be accepted by Iran.
The details in this regard can be sorted out by the Experts Group which should meet to discuss and decide on all outstanding matters, he said.Recently, the official said, Iran invited Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi to visit Tehran to discuss the way forward on the project which would be undertaken after approval of competent authority.
Sharing details of the project, he said Inter Governmental Framework Declaration was signed between the two countries on May 24, 2009, while the GSPA was reached on June 2009. Subsequently, Pakistan issued sovereign guarantee on May 28, 2010. The project consultant was appointed on April 11, 2011, while the design feasibility, route survey and other formalities of the project were completed on September 8, 2012. The 56-inch diameter pipeline will initiate from South Pars gas field Iran and end at Nawabshah, covering a distance of around 1,931 kilometres with 1,150-km portion in Iran and 781-km in Pakistan.
