Petroleum Minister Shahid Khaqan Abbasi on Monday said the government would not let such a situation arise that Iran could impose penalty on Pakistan in case of failure to start work on the Iran-Pakistan pipeline project.
Expressing these views in a meeting of the Senate’s Standing Committee on Petroleum and Natural Resources held under Muhammad Yousaf, Abbasi said Pakistan was facing hindrances due to sanctions from the European Union (EU) and United States (US).
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.
The Inter State Gas Company (ISGC) MD informed the committee that the US has made it clear that there is no policy change regarding the 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 body expressed concern over MoU signed between United Company of US and Sui Southern Gas Pipeline Limited (SSGPL) without the government’s permission. The committee urged the minister to provide details of the MoU and to hold inquiry in this regard.
Abbasi said the government was negotiating over price of LNG from Qatar and nothing has been finalised so far. The minister alleged that the former government was least bothered to safeguard the interests of the people 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 SSGPL and a US 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 increase, the minister said.
Senator Hamza said, “Political parties were distributed gas connections that led to severe energy crises we are facing today.”
The legislative body asked the ministry to finance the Iran-Pakistan pipeline project through internal resources and not via bank loans.
