China cuts cost estimate by another $200 million for Gwadar LNG pipeline

lupgain

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ISLAMABAD:
Pakistan has clinched a gas pipeline deal at a lower price as China Petroleum Pipeline Bureau,
a Chinese company, has revised the cost of laying the pipeline downwards to $1.3 billion
after negotiations with the government in Islamabad.

According to an official, Pakistan and the Chinese company had initialed an agreement for
building a liquefied natural gas (LNG) pipeline from Gwadar, but the company has now lowered
the contract price to $1.3 billion compared to $1.5 billion quoted in the financial bid given to Inter-state Gas Systems.

Earlier, China had expressed concerns over the slow progress being made in awarding the
contract for the LNG pipeline.
“The revised cost is even less than the cost at which gas utilities – Sui Northern Gas Pipelines
and Sui Southern Gas Company – are augmenting their existing pipeline network to
enhance the transmission capacity to 1.2 billion cubic feet per day,” the official said.

China Petroleum Pipeline Bureau, which was designated by the Chinese government, brought
down the cost estimate for laying the pipeline as well as installation of compressors after holding talks with a negotiation committee constituted by the government of Pakistan.
dream od cpec coming in pieces

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