ISLAMABAD: Inter-State Gas Systems (ISGS) is set to invite companies for submitting tenders for Sheikhpura-Peshawar white oil pipeline.
This pipeline has been envisaged to reduce cases of oil theft and bring an end to oil tanker operators hegemony over supplies across Pakistan. Currently, a survey is being carried out by a consultant hired by ISGS over the feasibility of this pipeline, reported Express Tribune.
ISGS board of directors already gave go-ahead for the Sheikhpura-Peshawar oil pipeline on the build, operate and transfer model. The pipeline’s construction is expected to take two years to complete.
The project is expected to cost Rs56 billion, as the tendering process will ascertain the expected cost of every segment of the pipeline. Companies invited for filing tenders will be permitted to file bids for one segment or entire segment of the pipeline.
Once the contract expires, ISGS will be handed over control of pipeline to ISGS at no cost and relevant authority will provide guarantees for it to run and maintain pipeline for next twenty-five years.
Economic Coordination Committee (ECC) has already given go-ahead for the building of the pipeline, along with an approval from ISGS which led to hiring of a consultant to carry out the feasibility study.
White-oil pipeline project is set to have a lifespan of forty-years, which will be extended as per requirements via appropriate maintenance in future.
Decision to construct the pipeline was taken after frequent threats and strikes called by oil tankers association, which disrupted supplies across the country on a couple of occasions. The Petroleum division will be responsible for laying the pipeline and ISGS has been assigned the task of conducting the tendering process.
Three separate tenders will be required for the building of the oil pipeline from Machike to Chak Pirana, Chak-Pirana to Sihala and Sihala to Taru Jabba.