Pakistan authorized the Interstate Gas Systems (ISGS) to execute the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline project’s Gas Sale Purchase Agreement (GSPA) with Turkmenistan.
Sought is early implementation of both Tapi and the Iran-Pakistan (IP) gas pipeline projects, directing the concerned parties to complete the two projects to meet the rapidly increasing demand of energy.
Pakistan invited bids for building 785-km of IP pipeline from pre-qualified parties. Officials said Gazprom is the favorite to build and develop the IP project.
Iran has promised to provide $500 million in funding for the project and as per draft agreement Pakistan is bound to complete the project by the end of 2014 or else face a daily penalty of $1 million to Iran. As per draft agreement of the project, the contractor will have to complete the project within two years 2012-14.
Pakistan is expected to allow exemptions in duties and taxes on the import of certain materials required for gas import projects.