Sui gas companies have reportedly estimated Rs 100 billion Phase-II gas pipeline infrastructure development projects for handling and transportation of Liquefied Natural Gas (LNG) as well as anticipated indigenous gas. Sources said that phase-I involves gas pipeline infrastructure development projects by Sui Northern Gas Pipeline Company Limited (SNGPL) and Sui Southern Gas Pipeline Company Limited (SSGC) for transportation of 400 MMCFD LNG at an estimated cost of Rs 31 billion (Rs 18 billion by SNGPL and Rs 13 billion by SSGCL) with completion time line of 2015-16.
Sources further added that SNGPL and SSGCL have also submitted Phase-II projects to Ministry of Petroleum and Natural Resources for handling and transportation of 1.2 MMCFD with schedule completion timeline of 2016-17 at an estimated cost of Rs 100 billion. The SNGPL projected an allocation of Rs 23 billion in fiscal year 2015-16 for construction of 301 kilometers; and Rs 34 billion in 2016-17 for construction of 461 kilometer pipeline for supply of upcoming LNG or indigenous gas. SSGCL has estimated Rs 44.5 billion cost for Phase-II project with Rs 32 billion allocation by the company in fiscal year 2015-16 for 132 kilometer transmission pipeline and 12.5 billion in fiscal year 2016-17. SSGC Phase-II envisages transmission of 1200 MMCFD LNG within its franchise areas through a 42 inches 338 kilometer long dedicated pipeline and expansion of compression facilities during Phase-1.
Sources said that cost of SNGPL project-II is likely to escalate by Rs 8.6 billion in case the company fails to meet specified wobbe indicator (WI), a term used for interchangeability of fuel gas. As a result, nitrogen injection facility for mixing with 1200 MMCFD LNG at the cost of Rs 8.4 billion may be required to bring down the WI under permissible limits of OGRA's specified limit. However, OGRA has the power to give exemption in exceptional cases. Sources said that additional cost of Rs 8.6 billion was not included in the pipeline infrastructure project and would be required in fiscal year 2015-16 and 2016-17.
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