Pakistan has decided to kick-start work of the controversial Iran-Pakistan (IP) gas pipeline project, in view of the severe energy crisis being faced by the country’s textile industry, especially in Punjab, Petroleum Minister Dr. Asim Hussain said.
During his visit to the All Pakistan Textile Mills Association (APTMA), Dr. Hussain, also the Adviser to the Prime Minister for Petroleum and Natural Resources, said that overruling the domestic and international pressures, the Government would soon launch the project in association with Iran, which has undertaken to provide some technical assistance and US$ 500 million for the project.
Dr. Hussain said the country will soon come out of the crisis phase, however, gas consumers, whether domestic, commercial or industrial, would have to endure crisis till end of winter 2014, after which the situation is expected to ease.
As against its overall domestic production of four billion cubic feet per day (bcfd), Pakistan’s consumption stands at eight bcfd.
Dr. Hussain said that construction of new wells, imports of liquefied natural gas (LNG) and commissioning of the IP gas pipeline project would help in bridging this production-consumption gap in years to come.
The plan to boost LNG imports is expected to result in a significant rise in gas tariffs for all customers, who now enjoy low tariff rates, the Petroleum Minister said. Presently the Government provides a subsidy of Pk Rs. 300 to consumers using less than 300 units of gas, he added.
He further informed that this year the gas companies extended gas pipeline network by 200 km, which would cause the system to endure an additional gas burden of 200 million cubic feet per day (mmcfd). He added that in 2013 too, this expansion of pipeline network and gas consumption is likely to grow at the same pace.
Source:
http://www.fibre2fashion.com/news/textile-news/newsdetails.aspx?news_id=119325
