Wednesday, April 24, 2024
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Pakistan to Seek Reduction in Cost of Gas Import

Pakistan set up a committee to strive for a reasonable reduction in the price of gas which is going to be imported under the Turkmenistan-Afghanistan-Pakistan-India (Tapi) pipeline project.

The Economic Coordination Committee (ECC) has approved a loan of Rs17.5 billion from Allied Bank of Pakistan (ABL) to settle net hydel profit dues of Punjab. Furthermore, EEC has permitted the finance ministry to provide a sovereign guarantee.

The security of the pipeline starting from Turkmenistan and ending in India is the major concern for The Economic Coordination Committee (ECC).
According to a gas sale and purchase agreement between Inter-State Gas Systems and Turkmengaz for the daily supply of 1.3 billion cubic feet of gas to Pakistan had been signed in 2012, however, the pricing of gas was agreed with Turkmengaz.

The project is getting delayed due to different political and economic factors. The project has not remained sustainable as the price of imported liquefied natural gas (LNG) was almost half the price of Tapi gas.



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