APP – Inter State Gas Systems (Pvt) Limited (ISGSL) is likely to award contract for construction a 427 kilometers long Machike-Tarujabba oil pipeline during last week of the current month, which would be built in three segments. The company has received over 150 bids against a tender it floated last month for laying the pipeline.

“The company got a tremendous response in the bidding process from local as well foreign companies and the contract is likely to be awarded in last week of March,” ISGS Managing Director Mobin Saulat told APP.

He said the ISGS had given satisfactory response to various queries of the bidders regarding award of construction contract for the oil pipeline, which would help ensure smooth and safe transportation of oil.

“We are committed to move forward on the project with great determination,” he said and expressed the confidence that the pipeline would help avoid tragedies like Ahmedpur Sharqiya in which around 219 people had died and 59 were injured.

“The strategic project, which is being revived, will also help meet the ever growing requirements of an expanding economy and increase in POL products demand forecasts,” he said.

Mobin Saulat said the pipeline was of great importance and strategic nature as it would ensure smooth and safe supply of white oil products like High Speed Diesel and Motor Spirit Oil across the country.

Terming the pipeline “backbone” for oil transportation, he said it would be the safest, efficient and reliable mode of supplying petroleum products, avoiding the incidents of spilling of oil and rolling-over of tankers frequently taking place in different localities.

He said the pipeline would be constructed in three segments including Machike-Chakpirana (135-km of 18 inch diameter -proposed),  Chakpirana to Rawat (117-km of 18 inch diameter- proposed) and Rawat to Tarujabba (175-km of 14 inch diameter-proposed).

The MD said the project would be implemented on Build, Own, Operate and Transfer (BOOT) basis for 15 years term through open tenders.

“The project will be capable of transporting dual oil products HSD and MS oil from Machike to Tarujabba via Chakpirana and Sihala depots, completing the pipeline from Karachi to Peshawar. The feasibility study shows steady increase in demand of POL products and justifies the pipeline as it will have economic benefits and will be more advantageous over present trucking mode of transportation,” he remarked.