ISLAMABAD: As the Pakistan government is aware that US sanctions may hamper financing for the Iran-Pakistan gas pipeline project, it has decided to place a request before the new Iranian government for completely financing the vital energy project.
Iran had committed to the previous Pakistan People’s Party-led government a loan of $500m for laying the pipeline in Pakistan, which would cost more than $1bn. The two governments also agreed to award construction contract to Iranian firm Tadbir Energy. However, the contract could not be signed in the absence of sovereign guarantees by Pakistan.
Petroleum Minister Shahid Khaqan stresses that the new Pakistan Muslim League-N government would continue work on the IP gas pipeline and ‘we will discuss the project with the new Iranian cabinet and seek entire financing.’
Iran was facing sanctions and the Foreign Office had been asked to assess the impact of US curbs on the project, he said. Turkey and Armenia are already getting supplies from Iran.
Talking about liquefied natural gas (LNG) imports from Qatar, Abbasi said the Qatari government had asked Pakistan to build an LNG terminal before going for a gas supply deal. So far, no agreement had been signed for LNG imports from Qatar, he clarified.
“I visited Qatar along with Punjab chief minister, but the Qatari energy minister asked us to give a commitment that LNG terminal will be built first,” he said. Many countries have set up terminals first and then signed the gas supply deal. “We will follow this model,” Abbasi said.
The consultant for LNG import has proposed that Pakistan bring the Asian Development Bank (ADB) on board for guarantees in an effort to avoid providing government guarantees. “We want LNG suppliers to accept guarantees provided by gas companies rather than government guarantees” he said and declared that Pakistan would not import LNG from Qatar if the price was not feasible.
He made it clear that the government would not explore the option of striking a state-to-state deal for LNG imports from Qatar and said Doha had varying gas price agreements with different countries.
Internews
