Iran gas to generate 5,000MW, says Asim

[LahoreEstate]

Wednesday, May 27, 2009
KARACHI: Prime Minister’s Advisor on Petroleum and Natural Resources, Dr Asim Hussain said that natural gas imported from Iran will be exclusively used to generate 5,000 megawatts of electricity.

He said that country needs 8 to 10 billion cubic feet of gas while the supply is only four billion cubic feet. To a question, he said that Irani gas is not expensive in comparison to natural gas, which is going to be even costlier than petrol due to its high caloric value and environmental-friendly nature.

“Gas is also a raw material for fertiliser, textile and other industries and it is 15pc more efficient than the furnace oil used in power generation”, he noted. He said cost of pipeline project has been reduced to $1.2bn as 42 inch diameter pipeline will be locally made and the cost of steel is $700m.

Dr Asim said that those who were opposing the gas pipeline project were enemies and do not want development in the country. “Pakistan can face a grave energy crisis if we are not able to materialise this pipeline project”, he said.

While giving calculations about the savings on Iran-Pakistan gas pipeline, Asim said Pakistan would save about $1.2 billion at $60 a barrel of oil, and save $2 billion if oil price increased to $100 a barrel.

He said locally produced gas costs Rs364 or $4.5 per mmcf while Irani gas will cost Rs643 per mmcf. He said Iran has completed laying 900 kilometres of pipeline and would lay another 100 kilometres to reach the supply point at Irani border to supply nearly 1 bcf of gas per day.

To a question, he said that if India indicated willingness to join the project within the processing period, it will get gas from this pipeline, otherwise a separate 52 inch pipeline will have to be laid. He said gas price of Turkmenistan has been fixed at $10 per mmcf.

He pointed out that the results of Karachi off-shore seismic survey are encouraging and a couple of companies will start drilling activities by the end of this year.

http://www.thenews.com.pk/daily_detail.asp?id=179647