The Express Tribune: Govt Seeks to Negotiate Gwadar Pipeline Cost
The government has constituted a price negotiation committee in an attempt to seek a further reduction in the cost estimated by a Chinese company for laying the Gwadar liquefied natural gas (LNG) pipeline and setting up a terminal, an official says.
This project will work as an alternative to the Iran-Pakistan (IP) gas pipeline project and will be executed by the government in cooperation with the Chinese firm on a government-to-government basis.
Under the plan, the LNG pipeline will be laid from Gwadar to Nawabshah and the terminal will be set up at Gwadar port.
The price of steel, which stood at $1,300 per ton when the engineering consultant ILF gave the cost estimate, has come down to $900-$1,000 per ton. The consultant put the total cost of the pipeline and terminal at around $2.5 billion because of the fall in steel and compressor prices. MORE