ISLAMABAD, March 17: Prime Minister Shaukat Aziz has said that Iran-Pakistan-India (IPI) gas pipeline is an important feature of the country's energy mix plan. Presiding over a meeting held here on Saturday to review progress on the project, he approved the country’s approach for future negotiations on the project and asked the concerned quarters to expedite the process for finalisation of the project to meet future energy needs.

“IPI is a peace pipeline,” he said, adding that it would create linkages and inter-dependencies which would lead to a win-win situation for all and promote peace in the region.

He said the demand for natural gas was expected to grow by about 10 per cent per annum as a result of a high economic growth in the country, and the government was tapping all commercially-viable sources to meet the energy future needs.

Mr Aziz said the government had placed energy security among its major priorities, considering the energy to be the main driver of economic growth.

"We are trying to diversify the sources of energy and maximise output from gas, coal, hydropower, nuclear energy and alternate energy sources including solar, wind, bio-gas and bio-diesel," he said.

The government was also actively planning to launch major coal-based power projects, especially in Sindh, he said, adding that import of electricity from Iran and Central Asia was also being considered.

In the gas sector, he said, the government was focusing on increasing its indigenous capacity and importing gas on feasible terms. Domestically, the government was encouraging exploration activities and pursuing a target of 100 wells every year by local and foreign companies, he said.

About plans to import gas, the prime minister said additional gas supply was being arranged through import of LNG to meet the growing demands of power plants, IPPs and industrial consumers.

He said the government was also working on leveraging country's potential to become a main energy artery of the region.

“Pakistan enjoys a pivotal position at the crossroads of three vital regions of the world – south Asia, Central Asia and West Asia,” he said.