In an informal interview with journalists, Oil Minister Mossadegh Malik confirmed that Pakistan will request an exemption from the US for the Pak-Iran gas pipeline project.
Expressing concern over gas price hikes, Malik noted that regardless of fluctuations in the dollar’s value, companies consistently demand price increases. He highlighted that only 25 to 27 percent of citizens have access to gas, leaving more than 70 percent without access.
Malik emphasized the need to provide cheap electricity, noting that 99 percent of the population is connected to the electricity grid. He suggested that producing electricity from local gas could significantly reduce costs, bringing the price per unit down to Rs 10-12. By operating power plants at the wellhead price, the cost could further decrease to Rs 5-6 per unit.
Regarding the exemption for the gas pipeline project, Malik stressed the importance of completing the project without restrictions. He stated that sanctions imposed by the US would be unaffordable for Americans, and he intends to advocate for Pakistan’s position with the US.
Malik also highlighted the efficiency of LNG plants in Pakistan, suggesting their conversion to use local gas for generating cheap electricity. He emphasized providing a level playing field for all stakeholders in the energy sector and acknowledged the need for reforms to address the sector’s mounting debt, which has reached 5000 billion.