Sunday, July 31, 2011

Iran - Pakistan Gas Pipeline: China likely tone awarded construction contract

As Russia and China vie with each other to win the construction contract for the Iran-Pakistan gas pipeline project, Pakistan is expected to finalise an engineering and procurement deal with Beijing, 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 major part of the survey for laying the pipeline from Iranian border to Nawabshah has been completed and the remaining part will be finished by August 2,” an official said. More >>>

Location: Islamabad

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