ISLAMABAD: The federal government has decided that 994 mmcfd or 75 per cent of gas imported under about $10 billion worth Turkmenistan-Afghanistan-Pakistan-India (Tapi) gas pipeline project will be allocated to Punjab province to help it overcome severe energy crisis.
The initial cost estimates of the project were $7.6 billion. After including the cost of developing gas fields in Turkmenistan and other allied expenses, the cost is expected to go up to $10 billion.
The remaining 331 mmcfd of Tapi gas will be allocated to the Sui Southern Gas Company (SSGC), a statement said. The Economic Coordination Committee (ECC) of the Cabinet endorsed the Petroleum Ministry’s proposal to allocate 994 mmcfd gas to the Sui Northern Gas Pipelines Limited (SNGPL).
The gas shortage affects only Punjab, where the utility company is forced to carry out a gas rationing plan. However, it would still enable both SNGPL and SSGC to reduce the demand and supply gap on their systems. Currently, the SSGC rations gas for one day only and that too for industrial consumers.
