ILF Consulting Engineers comments on designing gas pipeline in Pakistan

Project is not affected by the international sanctions against Iran

Munich, 5 April 2012 – In the course of the sanctions against Iran also a project of the Munich company ILF Consulting Engineers was propelled into the spotlight: the collaboration in the design of a gas pipeline in Pakistan.
When completed, the pipeline of this project is to be connected to a pipeline on Iranian soil which is currently under construction. ILF has nothing to do with the pipeline in Iran. Of course, ILF is always following the changing sanctions against Iran as well as the effects they are having on current contracts and possible future contracts. The collaboration on this Pakistani project does not breach the current international sanctions.

“Should there be any changes resulting in the sanctions affecting this part of the pipeline we will immediately cease all works and cancel the contract,” says Bernhard Lässer, managing director of ILF Munich. “This is of course the usual practice; for example last year we ended our collaboration on a project for an oil field development in Iran as a reaction to the tightened sanctions.”
In 2007 the company ILF won an international tender in which many renowned engineering companies from all over the world participated. The award of contract, however, was delayed until August 2011. The task of ILF is to design the pipeline system in Pakistan and to prepare the tender documents for the EPC contractors involved in the construction. The client is the Pakistani company ISGS (Interstate Gas Systems) which has no ties to Iran.
The energy supply situation in Pakistan is dramatic. In numerous cities there is no electricity for hours on end, in many places there is no gas. Factories all over the country are closed three days a week due to energy shortages. Anees ur-Rehman, engineer and head of the ILF office in Lahore, Pakistan, warns: “The energy shortage is a huge danger for Pakistan. Much bigger than suicide attacks.”

The gas pipeline is scheduled to be finished at the end of 2014. While the pipeline on the Iranian side is finished apart from the last 250 km, the pipeline on the Pakistani side is still in the design phase. The length of the pipeline in Pakistan is approximately 780 kilometers. If the project is not completed on time Pakistan will face a huge financial burden as a take or pay agreement between the Pakistani government and Iran exists.

About the company:
Looking back on a success story of over 40 years, the ILF today employs over 1,800 staff at the main offices in Munich and Innsbruck as well as in its over 30 branch offices. ILF works on challenging projects in the business areas oil & gas, energy & climate protection, water & environment as well as transport & structures.

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