The federal cabinet has approved initial works on the Iran-Pakistan gas pipeline, involving the laying of an 80-km segment from Gwadar to the Iran border. Estimated at $150.8 million, the project will be funded by Gas Infrastructure Development Cess. It is anticipated to address Pakistan’s energy needs and boost economic activity.
ISLAMABAD: The federal cabinet approved the works on an 80-kilometer (km) segment of the pipeline from Gwadar to the Iran border in the initial phase under the Iran-Pakistan (IP) Gas Pipeline project, ARY News reported.
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.
Earlier on February 21, a meeting of the Cabinet Committee on Energy (CCoE) was summoned on Friday to discuss matters related to the construction of the Pakistan-Iran Gas Pipeline.
The sources privy to the development said that Pakistan wants to lay an 80-kilometer pipeline to the Iran border in the initial phase.
The recent decision by the cabinet to greenlight the Iran-Pakistan gas pipeline project marks a significant development in the energy sector. The proposed pipeline, which aims to address Pakistan’s energy needs by importing gas from Iran, has been a subject of deliberation for quite some time. With the cabinet’s approval, the project is set to proceed, heralding the potential for bolstering Pakistan’s energy security and diversifying its energy sources.
The Iran-Pakistan gas pipeline project carries the promise of enhancing Pakistan’s energy independence and meeting the growing demand for natural gas in the country. It is indicative of the commitment to exploring diverse energy avenues to support economic growth and development.
The decision provides an opportunity for collaboration between Iran and Pakistan, further cementing their bilateral ties through mutual cooperation in the energy sector. As the project gets underway, it is poised to bring about positive outcomes for both nations, fostering a strategic partnership in the realm of energy.
The approval of the Iran-Pakistan gas pipeline project underscores the government’s dedication to advancing sustainable energy solutions and addressing the nation’s energy challenges. It reflects a vision for a future where energy security forms a cornerstone of national development.
In conclusion, the cabinet’s endorsement of the Iran-Pakistan gas pipeline project signifies a step towards realizing a more robust and diversified energy landscape for Pakistan. The project holds the potential to catalyze economic growth, bolster energy security, and strengthen international energy cooperation. As the initiative progresses, it is expected to bring about transformative benefits for both nations, positioning them at the forefront of sustainable energy collaboration.
Source: ARY NEWS
Summary:
The federal cabinet has approved the Iran-Pakistan gas pipeline project, endorsing the construction of an 80-kilometer pipeline from Gwadar to the Iran border. The estimated cost of the project is 150.8 million US dollars, with funding from the Gas Infrastructure Development Cess. This initiative is anticipated to help Pakistan avoid an 18 billion US dollar fine and save over 5 billion US dollars annually by purchasing gas from Iran. The project aims to enhance energy security, boost industrial confidence, stimulate economic activity in Balochistan, and contribute to Pakistan’s economic progress.
Disclaimer:
This content is AI-generated using IFTTT AI Content Creator. While we strive for accuracy, it’s a tool for rapid updates. We’re committed to filtering information, not reproducing or endorsing misinformation. – Khabristan.pk for more information visit privacy policy
Leave a Comment