Rs2,819.98 Mln GIDC Utilized On TAPI, PSGP Projects

Umer Jamshaid Published January 20, 2022 | 02:04 PM

The government has collected around Rs 332,107 million Gas Infrastructure Development Cess (GIDC) by October last, out of which it utilized Rs 2,819.98 million in advancement of two strategic projects including the TAPI and PSGP to meet the country's energy needs

ISLAMABAD, (UrduPoint / Pakistan Point News - 20th Jan, 2022 ) :The government has collected around Rs 332,107 million Gas Infrastructure Development Cess (GIDC) by October last, out of which it utilized Rs 2,819.98 million in advancement of two strategic projects including the TAPI and PSGP to meet the country's energy needs.

"Total collection of GIDC from January 2012 to October 2021 stood at Rs 332,107 million, out of which an amount of Rs 2,819.98 Million has been utilized as of November, 2021 in connection with Infrastructure Development Projects i.e. Turkmenistan, Afghanistan, Pakistan and India (TAPI) gas pipeline and Pakistan Stream Gas Pipeline (PSGP) (Formerly North-South Gas Pipeline (NSGP) Project)," according to an official document available with APP.

The two gas pipeline projects have great significance for the country as its existing hydrocarbon deposits are depleting by 9 percent annually and the oil and gas exploration companies could not find any major deposits like Sui since long.

Under the PSGP project, a 1,100-kilometre pipeline would be laid to transport 1.

6 billion cubic feet per day of gas (mainly imported Liquefied Natural Gas) from Karachi to Lahore, in collaboration with Russia.

Under the TAPI project, a gas pipeline would be laid from Turkmenistan through Afghanistan and Pakistan up to Pak-India border.

The planned constructionl and commissioning time of the project is two years after achievement of the financial close.

Turkmenistan, being the consortium leader for the TAPI project, is contributing up to 85 percent of equity, while the rest members Afghanistan, Pakistan and India have decided to take 5 percent each equity share in the project company.

"Pakistan's share @ 5% is estimated at US $ 200 million, which covers both pre and post FID (Final Investment Decision) stage. As of 31st December 2021, Pakistan injected US$ 8.25 million as capital contribution in the TPCL (TAPI Pipeline Company Limited," according to official sources.

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