The project was approved in 2000-2001 to enhance gas transmission capacity by the two Utility Companies by 1 billion cubic feet per day and ensure that increase could be brought into the system for replacing liquid fuel imported at cost of $1.4 billion per annum, he told APP.
The minister said the project was scheduled to be completed by February next, however, with the efforts of the government, Sui Northern Gas Pipelines Limited (SNGPL) has completed its share of project six months ahead of schedule at a total cost of Rs 9.5 billion against expenditure of Rs 12.428 billion.
The gas has started flowing into SNGPL system from July last and about 550 mmcfd gas is being supplied to power plants around Multan and to industrial sector to save foreign exchange of $750 million, he added.
About remaining part to be completed by Sui Southern Gas Company Limited (SSGCL), he said it has also completed major components of its project and all pipelines and compressors have been put into operation.
"The remaining part ie 16 inches ILBP Rehabilitation and SCADA work will be completed during the current financial year," he said and added the revised cost estimates are Rs 3153 million as against Rs 5635 million.
With the completion of the project, he said it will not only save $1.4 billion per annum on import of furnace oil besides contribute towards improvement in environment, as clean gas would become available for power, industrial, commercial, automotive and domestic use.
Nouraiz Shakoor said the use of natural gas will also reduce road and rail congestion as less liquid fuel would be transported through road and rail systems, thus saving high speed diesel utilised for transportation of liquid fuel.
Giving details, he said both the projects have been undertaken without any financial help either from foreign financial institutions or from the government of Pakistan.
Besides no foreign technical assistance was obtained and the two companies have completed the work with their own expertise and utilising major components for the project, which were locally manufactured.
During November 2002 to November 2003, around 600 mmcfd additional gas has been injected in the system replacing furnace oil import worth Rs 49 billion per annum.
Responding a question, he said additional gas has been allocated to power plants and other industry using furnace oil, resulting import of furnace oil has been eliminated and hence saving $290 million during the period of July-December 2003 as compared to the import figure for the corresponding period of last year.
He expressed the confidence that it will attract more investment in gas exploration, as gas transportation arrangement to consumption centers is now available.