Pakistan to Seek Chinese Funding for Iran Gas Pipeline

Pakistan will approach and request China to fund the Iran-Pakistan gas pipeline, according to an oil ministry official.

The project needed to be approved by the Central Development Working Party (CDWP) and Executive Committee of the National Economic Council (ECNEC), Pakistani newspaper Daily Times quoted the official as saying.

He said that following the CDWP and ECNEC's nod, the ministry would approach China for financing the project and cabinet’s Economic Coordination Committee (ECC). A price negotiation committee will then be constituted to recommend acceptance of the price proposal from China Petroleum Pipeline - the project executing company, the newspaper added.

“Given the loss of time, the IP project timelines need to be extended. Pakistan is already working on the project under the alternative strategy,” he said.

Iran has already built 900 km length of the pipeline on its territory while Pakistan still has to start work on the pipeline that would traverse its territory.

About 250 million cubic feet gas would be imported from Iran during first year, while in the second year the import of gas would be enhanced to 500 million cubic feet while in the third year 750 million cubic feet gas would be imported.