Iranian Oil Ministry to pay contractors in oil and gas
Baku, Azerbaijan, Feb. 14
By Khalid Kazimov - Trend:
In its 3rd tender announced in the past month, the Iranian Oil Ministry has decided to pay contractors from resources that were previously set to go into the Iran-Pakistan gas project, Mehr news agency reported Feb. 14.
Since Iran's gas export to Pakistan is suspended, Iran's oil ministry is seeking to make up for the failure by improving the provincial gas distribution network for its southeastern Sistan-Baluchestan Province.
Through the new tender, the company plans to pay the contractors working on the network from stalled projects in kerosene and gasoil in particular as well.
CEO of Iran Gas Engineering and Development Co. Alireza Gharibi says that the single-stage tender is going to fund the gas supply to Sistan-Baluchestan via private-public cooperation.
The plan to make up for the stalled Iran-Pakistan gas pipeline also includes providing gas to 5 thermal power stations of the province, situated in Iranshahr, Zahedan, Chabahar, and Konarak as well as some industrial units in the area.
"Besides that, gas would be supplied to 300 thousand urban and rural households in the counties of Zahedan, Chabahar, Khash, Zabol, and Konarak," the official further noted.
He explained that the projects will take 2 years to accomplish and that the direct cost of the projects are estimated at $1.2 billion.
The Peace Pipeline project was originally initiated between Iran and Pakistan. Later India expressed an interested in joining this project.
The Iran-Pakistan gas pipeline, projected to cost $1.2-1.5 billion, would have enabled the export of 21.5 million cubic meters of Iranian natural gas to Pakistan on a daily basis.
The project was aimed at constructing a 1,620-mile (2700 km) pipeline from Iran's South Pars fields in the Persian Gulf to Pakistan's major cities of Karachi and Multan and then further to Delhi, India. Iran is the most geographically convenient supplier of gas to both countries.