02 January 2004	Friday	09 Ziqa'ad 1424

KARACHI, Jan 1: Iran's Deputy Minister for International Affairs, MH Nejad Hosseinian has said that his country is keen to resolve the issue of petroleum products smuggling across Pakistan-Iran border.

Talking to the managing director of Pakistan State Oil (PSO), Tariq Kirmani, the Iranian minister, who is leading a high level delegation from the petroleum sector, said his government was ready to extend all help and cooperation to Pakistan to curb the growing smuggling.

The minister was informed by the MD PSO about the future plans regarding setting up of eight million ton per annum capacity refinery and Rs7 billion white oil pipeline.

Kirmani briefed the guest about the concerns of oil marketing companies regarding the problem arising out of the huge disparity on two sides of the border which is a great incentive for the illegal trade, says a press release.

The Iranian delegation also visited Sui Southern Gas Company's Head Office on Thursday and met senior management staffs. SSGCL managing director, Munawar Baseer Ahmed highlighted company's major development and expansion project of $600 million, which will result in the enhancement of the company's transmission capacity from 1,200 mmcfd to 1800 mmcfd by laying of 630 km additional high pressure pipelines along with 3,500 km of distribution system, the press release said.

The MD also informed the delegation that ISGSL is a joint venture of SSGC and ISGSL, which is acting as a front end entity for determining potential gas supply and demand requirements of Pakistan on a long term basis and to coordinate between various players associated with the import of natural gas from across the neighbouring countries such as Qatar, Iran and Turkmenistan.

During the course of presentation, capabilities of both SSGC and SNGPL were reviewed for undertaking the potential import pipeline. The delegation was advised that, as a follow up of the working group meeting at Islamabad, a technical committee comprising experts from both gas companies and ISGSL, will be visiting Iran within the next one month to further refine the modalities proposed for the pipeline routing, design specifications and project implementation.

Baseer agreed with the Iranian proposal to bring gas at the Pak-Iran border and for Pakistan to develop its own infrastructure for further distribution within Pakistan. Both sides agreed to remain engaged in the exchange of information and find ways and means for mutual co-operation in the execution of regional gas pipeline projects.