ISLAMABAD   -  Talks with international investors on investment in Reko Diq copper goldmine at advance stage and a major breakthrough is expected in next two to three months, Minister for Petroleum Musaddik said Wednesday.

While taking to media here, the minister said there is no base of the news of Iran imposing $18 billion penalty on Pakistan for not executing Iran-Pakistan gas pipeline project, as no economic review has either done by Islamabad or Tehran in this regard. He discussed variety of issues related to oil and gas sector in the country while talking to media here.

Regarding warning by Iran of imposition of $ 10 billion penalty on violation of agreement related to execution of Iran Pakistan Pipeline, the Minister said Iran never talked about $18 billion fine.“I do not know where the figure of 18 billion dollars came from,” Minister of Petroleum said. “I have seen all the files and documents, nowhere is there any mention of $18 billion,” Mr Malik claimed. Neither Iran, nor Pakistan has done any economic review in this regard, the minister said.

However, the Minister refrained from commenting on the current situation related to the Iran gas pipeline project saying that Pakistan is party, therefore, he cannot comment on the issue now.

“After consulting the Attorney General of Pakistan, I will be in a position to talk on the issue,” Musaddik said. On Greenfield refinery, by Saudi and Chinese investors, he said that the government was working on attracting billion of dollars investment in setting up oil refinery in Pakistan.

Earlier, it was planned that the refinery will be installed for crude oil into refine petroleum products. However, owing to expected decline in petroleum products consumption in future, and good prospects for the petro-chemical products it has been decided to rethink the earlier plan, now it has been decided that the refinery will be producing various products on 50/50 basis, which means that 50 percent refinery will converting crude to refine products, while the remaining 50 percent will convert it to petro chemical products.

The Minister further informed that talks with international investors on Recko Diq at Advance stage and a major breakthrough is expected in next two to three months, Minister for Petroleum Musaddik said.

Malik, without naming Saudi Arabia, expressed the hope of good investment in Rekodic project. “The Rekodiq project is an asset for Pakistan and is at advance stage,” he said and refused to disclose further information.

Interestingly, Musadak Malik expressed ignorance over the issue of diesel imports in bulk by a few oil marketing companies that led to the refineries crisis. When asked by journalists regarding the HSD crises, the minister expressed ignorance over the issue. “I will check from Ogra and action would be taken against those involved in this crisis,” he said.

Responding to a question about gas crisis in the upcoming winter season, he said that the country was importing 1000 MMCFD LNG.

Therefore, there would not be any issue of gas in winter season. The government is going to introduce seasonal tariffs in the country, he said.

Pakistan may require a single cargo of LNG on spot basis,” he said adding that cost of indigenous gas was Rs 1380 per mmbtu and if it is blended with LNG, its cost would go up to Rs 1600 mmcfd. He further said that there was no plan to increase gas prices for the consumers.

Regarding solar electricity, he said that the country had still space for solar projects in grid and rooftop projects. He said that he was working on report that would be submitted to the prime minister. He added that government wanted to move with the world and did not desire to go against the world.