In order to cater to its high energy demand, Pakistan is planning to import natural gas through pipelines from neighbouring countries. To fully utilise the imported gas and providing it to end customers, the infrastructure of gas pipeline needs to be developed. Considering geological, topographical, geopolitical and climatic conditions of the country, there is added risk of earthquake, landslides and floods.
In Pakistan industrialisation, agriculture, transportation and even domestic utilisation of the energy depends on oil and gas sector. Almost 80 percent of power generation is oil and gas based (50 percent gas and 30 percent oil). The expected investment in pipeline construction is within the range of 7 to 10 billion dollars during the next 5-10 years.
Three most critical tasks are excavation, transportation of material and stringing of pipelines. The most critical risks come out to be change in economic parameters, change in design and scope, earthquake and terrorism during construction and operation of gas pipelines. Considering all risks the probable values to project completion calculated by Risky Project is 460 days. However, the base project duration is 390 days.
The secondary risks like change in material prices, construction not finished in time or budget and design not in time can be reduced or transferred to the other party or organisation by contract.
Organizational or technological risk like insufficient resource planning or project management, change in scope etc can be eliminated by improving the process or application of new technologies available in this field.
JAHANZEB JANJUA
Lahore
