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2018-09-28 09:50:00

PAKISTAN - RUSSIA GAS PIPELINE: $10 BLN

PAKISTAN - RUSSIA GAS PIPELINE: $10 BLN

ETIn a major breakthrough, Pakistan and Russia are set to sign a $10-billion offshore gas pipeline deal on September 27 in Moscow, a project planned by the latter to capture the energy market of Pakistan.

Sources told The Express Tribune that the cabinet, during the tenure of previous Pakistan Muslim League-Nawaz (PML-N) government, had approved the signing of the gas pipeline deal with Moscow.

Inter State Gas Systems (ISGS) – a state-owned Pakistani company established to handle gas import projects and is already working on schemes like Turkmenistan-Afghanistan-Pakistan-India (Tapi) gas pipeline – has been designated by Pakistan for executing the pipeline project along with Russia's energy giant Gazprom. A Pakistani delegation will leave for Moscow on Wednesday (today) to sign the multibillion-dollar deal.

Talking to The Express Tribune, ISGS Managing Director Mobin Saulat acknowledged that the agreement would be inked in Moscow on September 27. He revealed that Gazprom would conduct the feasibility study on its own expenses to assess economic viability and cost of the project.

"China-Pakistan Economic Corridor (CPEC) has now entered the industrialisation phase and needs gas for duty and tax-free Special Economic Zones (SEZs)," he said. "The offshore gas pipeline will meet energy needs of industries being set up in the economic zones along CPEC route."

According to officials, the pipeline will connect Pakistan and Russia and act as an energy corridor between the two countries. "Strategically, it is a very important project as the two countries will come closer to each other," an official said. "At the same time, Pakistan will gain access to the Russian market in order to boost its overall exports which remained stagnant during five-year tenure of the PML-N government."

Russia has nominated Public Joint Stock Company Gazprom for implementation of the project. Pakistan's cabinet has permitted the company to conduct the feasibility study at its own cost and risk.

Separately, ISGS is working on the $10-billion Tapi gas pipeline which will connect South and Central Asia. Construction work on the scheme in Pakistan is planned to start in March 2019.

These projects are termed game changer for Pakistan as they will not only lead to regional connectivity, but will also meet growing energy needs of the country.

Owing to a long-running tussle with Europe and the United States over the annexation of Ukrainian region of Crimea, Russia is looking for alternative markets and wants to capitalise on the increasing energy demand in South Asia.

Russia has been a huge gas exporter to European Union (EU) countries and Turkey since long and despite US anger, Moscow has continued to provide gas to them. Moscow receives gas from Turkmenistan and then exports it to EU states.

Pakistan has been experiencing gas crisis, particularly in winter, for the past many years as domestic production has declined with new additions being offset by depleting old deposits. In a bid to tackle the crisis, the PML-N government started liquefied natural gas (LNG) imports from Qatar under a 15-year agreement and brought supplies from other sources as well.

According to a government official, after signing of the memorandum of understanding (MoU) for the offshore pipeline, work on the feasibility study will begin. Russian gas exports touched an all-time high in 2017. According to Gazprom, gas flow to Europe and Turkey, excluding ex-Soviet states, hit a new daily record of 621.8 million cubic metres.

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Earlier: 

TAPI PIPELINE FOR CHINA
2018, August, 10, 10:40:00

TAPI PIPELINE FOR CHINA

REUTERS - Originating at the giant Galkynysh gas field in Turkmenistan, the $9.6 billion TAPI (Turkmenistan, Afghanistan, Pakistan and India) pipeline involves the four countries’ own energy companies, and would carry 33 billion cubic metres (bcm) of gas a year.

 
 РУССКИЙ ГАЗ ДЛЯ ПАКИСТАНА
2018, February, 27, 13:35:00

RUSSIAN GAS FOR PAKISTAN

GAZPROM - The parties discussed the prospects for bilateral cooperation, including the potential for supplying LNG from the Gazprom Group’s portfolio to Pakistan, as well as collaborating in hydrocarbon exploration and production in the country.

 PAKISTAN OIL DEMAND UP 13%
2017, March, 14, 18:35:00

PAKISTAN OIL DEMAND UP 13%

Pakistan's economy expanded 4.2% in 2016, foreign investment has continued to grow -- attracted by the multi-billion dollar China-Pakistan Economic Corridor project -- and improvements in the country's security front, following the government's efforts to combat terrorism, have also led to economic gains and additional investment.

 TAPI GAS PIPELINE GAMES
2017, January, 26, 18:30:00

TAPI GAS PIPELINE GAMES

The Tapi pipeline is projected to export up to 33bn m3 of natural gas a year from Turkmenistan to Afghanistan, Pakistan and India over 30 years. It was earlier scheduled to be operational in 2019 but, because of delays in achieving financial closure, the pipeline's first gas flows from Turkmenistan are now scheduled for 2020. The much delayed project was formally inaugurated on December 13, 2015.

 LNG FOR PAKISTAN
2017, January, 20, 18:35:00

LNG FOR PAKISTAN

Pakistan LNG Limited opened the financial bids for the supply of 240 shipments of LNG January 19. Gunvor has bagged a five-year contract to supply 60 shipments while Eni has been awarded a 15-year contract to supply 180 shipments.

 

 IRAN-PAKISTAN GAS PIPELINE
2016, August, 9, 18:30:00

IRAN-PAKISTAN GAS PIPELINE

Iran has already built 900 km length of the pipeline on its territory while Pakistan still has to start work on the pipeline. Once the pipeline is operational, about 250 million cubic feet gas would be imported from Iran during first year, while in the second year the import of gas would be enhanced to 500 million cubic feet while in the third year 750 million cubic feet gas would be imported.

 PAKISTAN & RUSSIA GAS PIPELINE
2015, October, 20, 19:15:00

PAKISTAN & RUSSIA GAS PIPELINE

Pakistan and Russia signed a major agreement to build a 1,100-km gas pipeline from Lahore to Karachi, that will take cooperation between the two Cold War-era adversaries “to a new level”.

Tags: PAKISTAN, RUSSIA, GAS, PIPELINE