File photo shows a construction site of Iran-Pakistan gas pipeline.
A private Iranian company is scheduled to be awarded the contract for laying a pipeline in Pakistan under the multi-billion-dollar Iran-Pakistan (IP) natural gas supply project between the two Asian countries.
Pakistani public sector firm Interstate Gas Systems, and Tehran-based Tadbir Energy Development Group will sign the contract in Islamabad on Monday, the English-language The Express Tribune
reported on Sunday.
“Pakistan and Iran have already signed an inter-governmental cooperation agreement. The Iranian firm is now formally being awarded the contract,” sources familiar with the case said on condition of anonymity.
The sources added that Tadbir Energy Development Group would undertake all engineering procurement and construction work for the first segment of the project, which starts from the Iran-Pakistan border and costs around USD250 million.
The Iranian firm will also carry out the second segment of the project, and extend the financing later to USD500 million.
The remaining amount is expected to be generated through Pakistan’s Gas Infrastructure Development Cess (GIDC).
The Iran-Pakistan gas pipeline, projected to cost USD1.2-1.5 billion, would enable the export of 21.5 million cubic meters of Iranian natural gas to Pakistan on a daily basis.
Iran has already constructed more than 900 kilometers of the pipeline on its soil.