General

Pakistani Senator criticizes gov’t for delaying completion of IP project

 

Islamabad, IRNA — Amid massive fuel prices hike in Pakistan and Islamabad’s decision to purchase expensive liquefied natural gas (LNG) from Qatar, a Pakistani Senator from the main opposition party has strongly criticized the government for delaying the completion of the Iran-Pakistan (IP) gas pipeline project.

Senator Taj Haider from Pakistan Peoples Party (PPP) in a statement said even after the exit of American Forces from our region this Government has not started work on IP Gas Pipeline project rather this Government prefers to buy gas at the highest ever rates of $ 30 plus instead of the around 9 dollars per mmcft which the Iranian Gas would have cost.

The Pakistani politician’s remarks come as the country faces unprecedented increase in fuel prices in recent weeks, including petroleum products and electricity.

A leading Pakistani newspaper “Express” has reported that that the government ordered the most expensive shipment of liquefied natural gas from Qatar, which is unprecedented in the history of Pakistan.

In view of a possible gas crisis in the winter season across the country, the government has decided to procure an LNG cargo at a historic high price of $30.6 per million British thermal units (mmbtu).

Meanwhile Senator Taj Haider of the People’s Party has criticized the government’s decision to buy gas at exorbitant prices, blaming the government’s delay in the plan to transfer gas from Iran to Pakistan.

Senator Taj Haider recalled that it was none other than President Zardari who had inaugurated the Pak Iran Gas Pipeline at the Iranian border in the larger national interest after defying all kinds of political and military pressures.

Simultaneously a Gas Development Surcharge (GDS) was also levied by the People’s Government to pay for the cost of the part of the pipeline to be built on Pakistani soil. Unfortunately, with the Pak Iran Gas Pipeline almost abandoned by successive right wing government, GDS has only raised the cost of industrial production which is also seriously hit now by the rising gas tariff.

More than 70 % of the GDS has been contributed by the industries located in Sindh in the hope that ultimately gas shortage would be overcome and gas would be available all over the country at affordable prices.

Senator Taj Haider also cited the Pakistan-China Economic Corridor project, known as CPEC as another victim of US pressure, and warned that delays in advancing the Iranian gas pipeline and the CPEC would heavily cost Pakistan.

The groundbreaking ceremony of the Iran-Pakistan gas pipeline was held on March 11, 2012 in the presence of the then presidents of the two countries in the zero zone of the Iran-Pakistan border in the city of Chabahar.

The contract for the transfer of natural gas from Iran to Pakistan was signed between the officials of the two countries in 2010 and it was agreed that 21 million and 500 thousand cubic meters of natural gas would be transferred daily from Assaluyeh port of Bushehr province to Nawabshah in southern Pakistan.

This pipeline will include the transfer of Iranian export gas from the Iranshahr region to the zero point of the border with a length of 320 km and a diameter of 56 inches and the relevant measuring station.

Getting cheap energy is a vital issue for a country like Pakistan, which is always facing financial and economic problems, to the point that its politicians have repeatedly protested the high price of gas imported from Qatar and instead implement the Iranian gas plan for their country.

Pakistan is a country with a population of more than 220 million people, a large market for natural gas consumption in the region.

The Islamic Republic of Iran has always announced its readiness to increase the level of electricity exports to Pakistan, and in return, Pakistan can take a big step towards resolving the energy crisis in this country by accepting the offer of its neighboring country.

Iran is known as a country with a high energy production capacity that can help solve the energy crisis in Pakistan through its vast resources.

Having important and valuable experiences in the energy sector, Iran has the ability to build new transmission lines in Pakistan, with the help of which electricity transmission can be done easily even in adverse weather conditions.

Iran is also the largest exporter of electricity in the Middle East and currently exports electricity to Pakistan, Turkey, Iraq and Afghanistan, while Iran currently exports 104 MW to Pakistan.

Ambassador of the Islamic Republic of Iran to Pakistan Seyed Mohammad Ali Hosseini during a meeting with local journalist in July this year had said Iran has fulfilled all its promises regarding the IP project and is ready to move forward.

He added: Our Pakistani friends have not been able to fulfill their commitment due to some problems so far, but we hope that this project will be completed as soon as possible so that the government and people of Pakistan can enjoy the benefits of this great energy project.

Hosseini described energy as the driving force of any industrial and economic activity in the country and said if the gas pipeline from Iran to Pakistan is completed, different parts of the neighboring country, including the border areas of the two countries, can benefit from it.

He added Iran has set a new deadline for the Pakistani side and we are trying to complete this project as early as possible.

 

 

Source: Islamic Republic News Agency – IRNA