ISLAMABAD: Terming liquefied natural gas (LNG) import a sustainable solution to the energy crisis, Petroleum and Natural Resources Minister Shahid Khaqan Abbasi said on Monday Pakistan was committed to the Iran-Pakistan (IP) gas pipeline project but it was still facing sanctions.
“Dollar transactions have not been allowed and investors are not willing to finance due to the ‘snap back’ clause, which may lead to imposition of sanctions again on the project,” Abbasi said while speaking at a seminar on the “LNG market analysis and trends”.
The IP gas pipeline needed an investment of $2 billion, but investors were hesitant to invest, he said, stressing Pakistan was committed to implementing the project and was working on an alternative plan.
Responding to a question, the minister said some international sanctions were still in place on Iran and in this scenario Pakistan could not build the pipeline. However, Pakistan and Iran are closely collaborating on all the subjects including the IP pipeline and once sanctions are lifted work would start immediately.
He described LNG import as a short, medium and long-term solution to the gas crisis in Pakistan. “LNG will lead to economic growth and reduce the oil import bill,” he said, claiming it was cheaper than natural gas supply from the IP and Tapi pipelines. http://tribune.com.pk/story/1108955/fate-uncertain-investors-unwilling-finance-ip-pipeline-abbasi/
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