ISLAMABAD - Frontier Work Organisation (FWO) has Wednesday informed Oil & Gas Regulatory Authority (OGRA) that it will lay an oil pipeline from Lahore to Peshawar by 2020 with an estimated cost of $ 370 million.

In a public hearing at Ogra, FWO bid to get licence for its oil pipeline project received wide support from the stakeholders including Khyber Pakhtunkhwa government, oil industry such as Hascol, Attock Oil Refinery and other stakeholders.

A public hearing was held by Ogra regarding the grant of licence to FWO for construction of oil pipeline from Machike (near Lahore)  to Tarujabba (Peshawar) with an estimated project cost of $370 million.

In a public hearing, KP government termed the second option of oil pipeline, via GT Road, expensive, time consuming, hazardous and uncertain and supported FWO plan for the execution of oil pipeline from Lahore to Peshawar.  Except state owned entity Interstate Gas System (ISGS) no other oil sector company or stakeholder has opposed the project.

FWO presented the project and stated that the project will cater for the growing fuel demands of KP. The project will not only help to improve carbon emission and improve environment but will also uplift the economic condition of general public by creating thousands of job opportunity. Representative of FWO assured that the project will be completed in record two years time.

The Chief Executive Officer KPOGCL. Raziuddin, intervened on the behalf of Government of Khyber Pakhtunkhwa. Razi discussed the project performance of ISGS who is also interested in getting licence for the same project via different route. In his presentation he said the authority that none of the mega pipeline projects i.e. Iran Pakistan pipeline, TAPI, North-South Pipeline etc have been started by ISGS.

All the projects have been delayed with no commercial operation dates. He also emphasized on the fact that the route proposed by ISGS is not only lengthy in terms of kilometers but will also put heavy burden on the end consumers by increasing the POL prices.

He said that the cost proposed by the ISGS is almost double than the FWO proposed cost.

Raziudding said that the project will help to fulfill the strategic defense needs of Pakistan.

He requested the authority to grant the licence to FWO on urgent basis so that the project could be completed well before time. Government of Khyber Pakhtunkhwa fully supports the FWO proposed route and the project which will be a game changer for strategic needs of the country.

He also opposed the proposal of getting approval from the ECC and said that CCI is the right forum for such a decision.

He said KP government is also interest in having share in the project and is likely to acquire 10 percent share in the project. A government official meanwhile told The Nation that FWO project is more viable as it will do the project from local funding, providing reasonable cost, don't ask for government guarantee or tax exemption and guaranteed two years completion time. The decision on the licence is likely to be announced in the next 1o days, he added.