Islamabad: The Petroleum Division has asked the Economic Coordination Committee (ECC) to resolve the holdup faced by the white oil pipeline project, a news source reported. The problem arose when the Oil and Gas Regulatory Authority (OGRA) granted a licence to the Frontier Oil Company for laying another pipeline on the same route.
Inter State Gas Systems (ISGS) has also passed a resolution requesting the government to decide the matter.
ISGS had been tasked with laying the white oil pipeline between Sheikhupura and Peshawar by the previous government. Following the assignment, the authority invited tenders from interested companies for building the pipeline at an estimated cost of USD 280 million. The pipeline is being built with the intention of tackling oil theft, and ensuring a sustained supply of the resource.
The feasibility study for the pipeline has also been conducted. The composite tariff features rates that are approximately 60% lower than the present trucking rate. This measure is expected to help prevent the leakage of PKR 100 billion from the national exchequer.
