Financial advisor appointed for Iran-Pakistan gas pipeline project

Karachi: Government of Pakistan has appointed Industrial and Commercial Bank of China-led consortium as financial advisors Iran-Pakistan (IP) gas pipeline that will supply 750 mmcfd to Pakistan.

According to Alfalah Securities Limited, the consortium also includes leading local banks as advisors of the US$1.2 billion Iran-Pakistan (IP) gas pipeline. The IP project includes construction of 781 km gas pipeline from Iran Pakistan border to Nawabshah that would inject gas into transmission system of the two gas utility companies.

The government intends to dedicate imported gas through IP pipeline for power sector to meet the electricity shortfall that is expected to aggravate further on back of rising demand. However, the import of gas through IP project would only partially offset the gas demand supply gap where the estimated gap between demand and supply of gas in Pakistan is projected to increase from 1.6 bcfd in 2011-12 to over 2.5 bcfd in 2014-15.

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