In a press statement, the federal cabinet confirmed it has approved laying an 80 km pipeline on Pakistan’s territory on the recommendation of the Cabinet Committee on Energy (CCoE).
The cabinet announced that the pipeline would be laid from Gwadar to Iran’s border with Pakistan. The estimated cost of the project is 150.8 million US dollars.
The funds for the project would be provided by the Gas Infrastructure Development Cess (GIDC), the statement said.
The sources said that Pakistan would be able to avoid an 18 billion US dollar fine with the laying of the pipeline.
Additionally, Pakistan would save more than 5 billion US dollars annually after buying gas from Iran.
Earlier in its meeting, the Cabinet Committee on Energy okayed the laying of an 80 km pipeline in the initial phase.
The CCoE said that the project would be executed by Inter State Gas Systems (Pvt) Ltd. and will be funded through Gas Infrastructure Development Cess.
All the concerned divisions gave a positive nod to move ahead with the project to ensure gas supplies to the people of Pakistan, thereby addressing the increasing energy needs of the country.
“This will not only boost energy security of Pakistan but would enhance confidence of the local industry who would be ensured with the enhanced gas supplies. This will also catalyse the economic activity in the province of Balochistan and will contribute to the economic progress of Pakistan,” the CCoE added.
The sources privy to the development said that Pakistan would complete the laying of the pipeline within a year.
