The Economic Co-ordination Committee (ECC) of the Cabinet has approved allocation of gas volume of Iran-Pakistan gas pipeline to SNGPL and SSGC in the ratio of 65 percent and 35 percent. On a summary moved by Ministry of Petroleum and Natural Resources, the ECC decided that of total imported 750 mmcfd gas from Iran by December 2014, SNGPL would be allocated 471 mmcfd and SSGC 254 mmcfd, and remaining 25 mmcfd would be for compressor use.
As per decision of the Steering Committee/Sub-Committee of the ECC on gas import projects, the imported Iranian gas may be dedicated for power sector. SNGPL and SSGC would supply imported gas to only efficient power plants identified by Ministry of Water and Power, and after entering into back to back Gas Sales Purchase Agreement (GSPA) with power plants.
To evaluate gas requirements of SNGPL and SSGC, a gas demand supply study was carried out in consultation with the two gas utility companies and based on study it was proposed that the Iranian gas be shared between SNGPL and SSGC in the ratio of 65 percent and 35 percent. The ECC was informed that the IP project aims at bringing natural gas from Iran to Pakistan by December, 31 2014 and Inter-State Gas System Limited (ISGSL) has already signed Gas Sales Purchase Agreement (GSPA) with National Iranian Oil Company (NIOC). The GSPA became effective on June, 13, 2010 and is now binding on the GSPA parties.
The ECC had decided during a meeting in 2008 that ISGSL may enter into back to back agreements with SNGPL and SSGC for resale of imported gas from Iran on terms similar to those contained in the Iranian GSPA. The meeting was informed that ISGSL has indicated following details of gas to be imported from Iran and requested for allocation of gas to SSGC and SNGPL. The gas would be imported from Iran by December 31 2014 at delivery point Nawabshah with delivery pressure of 1200 psig.