Balochistan wants 250mmcfd of Iran gas for Gwadar

ISLAMABAD, Balochistan government has requested the federal government to allocate 250 mmcfd gas for Gwadar port, out of the gas to be imported through Iran-Pakistan (IP) gas pipeline project. In the 8th steering committee/subcommittee meeting of the Economic Co-ordination Committee (ECC), Balochistan Chief Minister requested for allocation of 250 mmcfd gas for Gwadar port, Advisor to Prime Minister on Petroleum and Natural Resources Dr Asim Hussain told National Assembly in a written reply on Friday.

He informed the lower house that the ECC supported the proposal, subject to clearance of price affordability issue, adding that afterwards the matter would be taken up by the ECC and the Cabinet for allocation of additional gas to Gwadar port. Soon after the approval of additional volume, gas would be supplied to the port of Gwadar, the Advisor said responding to a question raised by Maulvi Asmatullah.

He said that the steering committee in its 7th meeting held on January 15, 2009 had decided that the imported gas through IPI pipeline would go to power generation sector. On the royalty issue, he told media that royalty/transit fee is applicable only in case where the gas is transported for a third country such as India which is currently not taking part in the project. Since the imported gas is to be consumed in Pakistan only, no transit fee is applicable for Balochistan.

"As and when India joins the project and a transit fee is negotiated the Balochistan government would be taken on board," the Advisor said. He said that Balochistan Chief Minister is a member of the steering committee and he is actively participating in committee meetings and decision making process. Moreover, having equity stake in the project, the government of Balochistan is an active partner as far as ownership of the project is concerned.

About Saindak project, he said that royalty amounting to Rs 787,268,000 had been paid to Balochistan government by MRDL from 2004 to December 2008, and no amount remained unpaid against the Chinese company. The Chinese company earned Rs 38,989.938 million during last five years, against expenditure of Rs 33,377.14 million.

He said that according to information furnished by Saindak Metals Limited, total amount of Rs 36,580,000 has been spent by Chinese company, MCC, out of its income from Saindak project on the provision of facilities to locals like education, medical, electricity and water. He told National Assembly that oil marketing companies (OMCs) and oil refineries had earned Rs 14770464 during last six months, from December 8 to May 9.