Pakistan can offset energy crisis by Iran gas

March 2013 Iran and Pakistan inaugurated the Peace Pipeline that would supply Iranian gas to its neighbouring country. It was supposed to be finished by December 14 and come on stream by January 2015. Five years have past but Islamabad has failed to finish the construction while it´s facing acute energy crisis.

14 December 2018
ID : 1697
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A crisis in the gas sector, proliferated across the country as gas shortages, forced industry closures across Punjab and Sindh provinces, and even domestic consumers in many parts faced outages.


The Iran-Pakistan gas pipeline is considered to be the easiest and most feasible route for importing natural gas. The project, also dubbed the Peace Pipeline, was inaugurated in March 2013. While Iran has since then laid its side of the pipeline, Pakistan is yet to begin work on its side.

The project was to be completed by December 2014 and come on stream from January 1, 2015. Under the penalty clause it was agreed by both sides that if Pakistan fails to have intake of Iranian gas from January 1, 2015, it will have to pay Tehran $1 million per day for damages.

The demand for gas has increased in Pakistan’s domestic sector with the change in weather. Already facing power shortage, the masses are forced to rely on alternate sources.

Gas is not being consumed by the transport sector alone in Pakistan. It has been piped to households since the 1980s subject to heavy transit loss. 
It is used to produce electricity because Pakistan has gradually shifted from river water to gas together with other oil-based fuels.

Residents of Pakistan’s largest city and financial hub Karachi continued to suffer as the CNG crisis entered its sixth day, disrupting public transport and daily routine.

Supply of gas to CNG stations remained suspended, posing difficulties for the residents as public transport owners continued their strike, leaving commuters stranded in bus stops.

The halt in the supply of gas and the unavailability of public transport has forced commuters to use other means such as rickshaws, taxis and bikes.
On Tuesday night, the Karachi-based Sui Southern Gas Company (SSGC), which supplies gas in Sindh and Balochistan provinces, announced to halt gas supply to CNG stations and captive power plants of all general industries.

SSGC said that it was facing acute shortage of gas and low pressure in the system, which was affecting adequate supply to domestic and commercial sectors.

Stakeholders have urged the provincial as well as the federal government to take urgent stock of the situation and ensure that the situation does not get aggravated at the expense of the masses.

Prime Minister Imran Khan has also ordered that boards of directors of the Sui Northern Gas Pipelines Limited (SNGPL) and SSGCL be dissolved owing to the prevailing gas shortfall in the country.

The premier gave directions for stricter action against the gas suppliers as the CNG crisis continued to disrupt public transport.Pakistan’s Minister for Petroleum Ghulam Sarwar Khan has told IRNA that he had already stressed that Iran-Pakistan (IP) pipeline is a very significant energy project and its completion would end energy crisis in Pakistan.

He added that Pakistan wants to implement the gas pipeline agreement between the two brotherly countries.

Earlier, Iran's Ambassador to Pakistan, Mahdi Honardust, had said the pipeline can play a vital role in fulfilling Islamabad's energy requirements.

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