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100mmcfd gas allocated to KP for power generation

100mmcfd  gas allocated to KP for power generation

ISLAMABAD: The federal government has approved a long-standing demand of Khyber Pakhtunkhwa and allocated 100 million cubic feet per day (mmcfd) gas to the province for power generation.

On Friday, the Senate Standing Committee on Pet­roleum and Natural Resou­rces, chaired by Senator Talha Mehmood, was infor­med by Petroleum Minister Shahid Khaqan Abbasi that the matter stood resolved.

For almost two years, the KP government had been demanding the allocation of 100 mmcfd gas for setting up combined-cycle gas turbine (CCGT) power projects in the province.

The federal government had maintained the country was already short of gas and wanted the power plant to be established through the Private Power Infrastructure Board (PPIB).

The KP government had demanded the allocation under Article 158 of the Constitution which empowers the province producing natural gas to have the first right over other parts of Pakistan.

Chairman Senator Talha Mehmood belonging to the JUI-F welcomed the announcement made in the committee and said the rights of provinces granted in the Constitution should be observed.

Iran-Pakistan gas pipeline

The committee members stressed for a briefing over the status of Iran-Pakistan gas pipeline project.

The petroleum minister said work was yet to start on the project.

“International sanctions have just been lifted on Iran and it will take time to reassess ground realities,” Mr Abbassi said.

He added the issue was on the agenda of Iranian President Hassan Rouhani’s ongoing visit to the country.

He said Pakistan lifted sanctions against Iran and the government was seriously working over the $2 billion project to import 750 mmcfd gas from Iran.

“If we were to start working on the project today, it would be completed in 2018,” the minister said.

The minister said no gas pipeline project, including the construction of re-gasified liquefied natural gas (RLNG) pipelines, was part of the China-Pakistan Economic Corridor (CPEC).

“China was willing to construct an RLNG pipeline from Gawadar to Nawabshah with a capacity to transport up to 1.2 billion cubic feet per day (bcfd) but it was not a part of CEPC,” he added.

The committee was informed that Russia has agreed to build an RLNG pipeline on ‘Built Operate Transfer’ basis from Karachi to Lahore at the cost of around $2bn.

Published in Dawn, March 26th, 2016

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