Int’l sanctions behind IP gas pipeline project delay: Abbasi

There are many misperceptions on the intentions of government about Iran gas pipeline project, however, international sanctions on Iran are main hurdle to make any progress on this project and if international sanctions are removed, Pakistan could complete this project within 30 months, said Federal Minister for Petroleum & Natural Resources Shahid Khaqan Abbasi while addressing business community at Islamabad Chamber of Commerce & Industry.

Abbasi said Iran has been asked to revise timeline of the project in view of sanctions. He said there are also many complications in Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project and enhancing domestic production of gas is our main focus. For this purpose, gas policy has been revised, 50 blocks have been auctioned and more will be auctioned to improve domestic gas production. He said government is also focusing on shale gas.

He said due to supply and demand gap, import of LNG is the only short-term solution and efforts are afoot for a terminal to handle 400 million cubic feet per day (mmcfd) LNG which will save USD1.2billion per year. He said no proper planning was done during the previous years to cope with rising demand of gas, but the government is committed to bridge this gap within shortest possible time by utilising all options.

He said government will take all possible measures to provide gas facility to industry. We are working to ensure efficient utilization of gas to improve its maximum availability. He said with the improvement in availability of gas, ban on new connections will go. He said government is focusing on deregulation to minimize its role & interference in business activities so that businessmen could take the lead in economic development of the country. He assured the local business community that their problems will be resolved on priority.