A 540km long gas pipeline completes the project on gas transfer
A 540-km-long gas pipeline set up by Sadid Industrial Group (SIG), completes the project on gas transfer from South Pars to central Iran. According to a report released on Monday by SIG public relations department, given the significance of the extension of oil and gas pipelines and based on a comprehensive survey on the production of pipelines, which might be welded to one another directly, the SIG managed to sign a contract with the German SMS Meer Enterprise after winning the bid for the implementation of the country's nationwide gas pipeline project, IRNA reported. The Deputy Managing Director of SIG, Sardarnia, recalled that the pipeline is due to be 740 kms long and that the tender was held for 540-km-long pipeline to transfer gas from Oslavieh region in the South to central Iran. Referring to the annual production capacity of the pipe manufacturing plant currently under construction in Mahshahr, Khuzestan province, at 350,000 tons per year, he said that the plant's final capacity will depend upon the thickness of the applied sheets and the diameter of the pipes which are variable. He pointed to the total amount of the contract signed between SIG and Iran's National Gas Company (INGC) allocated to the piping project at $226 million.He added that the project is due to be completed in two phases of constructing the pipe manufacturing plant in 15 months and delivering the pipes in 19 months.He noted that SIG is expected to supply the all needed pipes and equipment for the implementation of the fourth gas pipeline within 34 months. He indicated the amount of investment on the project of construction of gas pipes in Mahshahr at Rls400 billion and said that SIG managed to obtain the approval of the operating bank and the Central Bank of Iran to use the resources of the excess hard currency fund by preparing and submitting the required technical and economic report on the project. A credit of $30 million is due to be extended to SIG by the indicated banks, while the rest will be provided from SIG internal resources and its increased capital as approved by the emergency session held by its general assembly.He added that the project would create direct job opportunities for 180 individuals.Concerning the plants shares, he said that the SIG wholly owns the shares of the new enterprise which are presented and exchanged in the stock market.