As Russia and China vie with each other to win the construction contract for the Iran-Pakistan gas pipeline project, Pakistan is expected to finalize an engineering and procurement deal with China, which may also provide financing in line with the growing energy cooperation between the two sides.
Domestic gas utilities – Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL) – are also lobbying to grab the engineering, procurement and construction contract for the pipeline, which will bring in much-needed gas from Iran’s South Pars gas field.
Germany-based consultancy firm ILF is conducting a route survey for the $1.25 billion Pakistani portion of the pipeline and will soon be completing its work, after which the engineering contract will be awarded. SSGC and SNGPL had also wanted a share in the consultancy contract with ILF, which resulted in a delay in completing the survey, sources said.
ILF, which got the contract for $55 million, is working in collaboration with National Engineering Services of Pakistan (Nespak).
A Pakistani delegation, led by Federal Water and Power Minister Naveed Qamar, would seek investment and offer the engineering and equipment procurement contract for the gas pipeline to China.
The delegation will raise the issue in a two-day meeting of the Pakistan-China joint energy working group.
The project will be funded through public-private partnership, which will cost Pakistan an estimated $1.25 billion for its side of the pipeline.
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Source: NIGC, August 2, 2011;