Govt misses deadline to execute North South Gas Pipeline

CCoE considers the option of executing the project by state-owned gas utilities-SNGPL and SSGC

Aftab Ahmed

Islamabad: The government has missed the deadline of the Supreme Court to start construction work on the North-South Gas Pipeline Project.

Now, the government considers the option of executing the project by state-owned companies-SNGPL and SSGC as Pakistan has technical issues with Russia.

Supreme Court had directed the government to initiate work on the North-South gas pipeline project within six months. However, the government had missed the deadline now.

The apex court had given a verdict to recover multibillion rupees from the textile and fertilizer barons on account of gas infrastructure development cess (GIDC).

The Cabinet Committee on Energy (CCoE) considered the summary, petroleum division had submitted regarding the “Pakistan-Stream Gas Pipeline (PSGP) Project” and observed that there are massive negative consequences of the delays in the implementation of this project and the deadliest.

It noted that the government had already missed the deadline Supreme Court had given to start work on North-South Gas Pipeline Project.

Cabinet body further noted that there is no imminent possibility to start work on the gas pipeline project. Therefore, it stressed finalizing an alternate plan as soon as possible, but no later than mid-July 2021 to start work on the project.

Officials said that gas utilities would work under the alternate plan.

The Petroleum division informed the meeting the Ministry had submitted a summary on the subject as per rules of business rather than a presentation.

Petroleum Division briefed the forum that the progress was underway on various aspects of the project.

However, it had prepared three different scenarios for consideration of the Cabinet committee on energy.

It discussed the issue relating to technical constraints in the proposal of the Russian Federation with reference to 42 Inch Pipeline versus 56 Inches Pipeline in detail.

The cabinet body also discussed the capacity of the SSGCL and SNGPL for the construction/laying of the pipeline. The chair observed that the issue was very important for the future economic growth and energy requirement of the country.

Moreover, the cabinet body had conveyed various directions from time to time. Therefore, the project needs to have financial close without the further loss of time.

The Cabinet Committee on Energy (CCoE) considered the summary, petroleum division had submitted regarding the “Pakistan-Stream Gas Pipeline (PSGP) Project”.

It observed that there are massive negation consequences of the delays in the implementation of this project and the deadliest by the Supreme Court of Pakistan has already been missed, with no imminent possibility of the start of work. Therefore an alternate plan needs to be finalized as soon as possible, but no later than mid-July 2021.