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Gas pipeline: Pakistan, Iran to sign construction contract today
Source: Dunya News | 15-02-2013

The critical Iran-Pakistan gas pipeline project is entering the implementation phase as Pakistan’s state-owned firm Inter-State Gas Systems and Tadbir Energy Costar Iranian Co will sign a construction contract for laying the pipeline in Pakistan today (Friday).


Adviser to Prime Minister on Petroleum and Natural Resources Dr Asim Hussain told this to the National Assembly Standing Committee on Petroleum and Natural Resources in a meeting here on Thursday. Engineer Tariq Khattak chaired the meeting.Pakistan and Iran are forging ahead with the project despite opposition from the US, which has imposed sanctions on Tehran for its alleged nuclear programme.


According to Hussain, the Iranian company will complete the process of constructing the pipeline in 15 months.Frontier Works Organisation (FWO), Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL) will also take part in the construction work.


Sources said Pakistan and Iran had finalised per kilometre cost of laying the pipeline, which will be of 42 inches and spread over 781 km, as well as markup on loan being provided by Tehran.


The per kilometre cost will be Rs190 million and markup on $500 million loan will be 3% per annum. “Iran had demanded 4% interest on loan,” a source said. 



 

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