Connect with us

South Asia

Russia May Invest a Whopping $14 Billion in Energy Sector of Pakistan

Published

on

Russia is considering to invest a whopping $14 billion in the energy sector of Pakistan. During a recent visit, the Russian side pledged an investment of $14 billion in the offshore gas pipeline project, North-South Pipeline Project and underground gas storages in Pakistan. EurAsian Times looks at a report in ExpressTribune.

Why Is The TAPI Pipeline So Important For India And Other Asian Nations?

The officials said that they would invest around $10 billion in the offshore gas pipeline project, $2.5 billion in the North-South Pipeline Project and the remaining on building underground storages in Pakistan. The Russian companies would build a gas pipeline from Karachi to Lahore to transport imported gas for meeting the needs of the gas-starved province. Recently, the government faced a severe gas crisis, which can be prevented by underground storages, said an official. The storages would help store imported gas allowing meeting rising gas demand at any time, particularly in winters, he added.

Meanwhile, Pakistan and Russian state-run entities on Wednesday signed intercorporate agreement to conduct a feasibility study of the $10-billion offshore pipeline project. Under this project, the Russian company, Gazprom, will conduct feasibility steady to build an offshore pipeline from Iran to Pakistan. The pipeline construction is expected to be completed in three to four years. Inter State Gas Systems (ISGS) Managing Director Mobin Saulat and Markelov signed the agreement in the Petroleum Division.

Earlier, the Ministry of Foreign Affairs irked Russia by refusing to sign the agreement in the presence of Prime Minister Imran Khan at the PM Office. This move came as a contrast to when the American energy giant – Exxon Mobil – was welcomed grandly to engage in offshore drilling, with the agreement being signed at the Prime Minister’s Secretariat.

In a letter sent to Petroleum Division secretary on February 4, a copy of which is available with The Express Tribune, Ministry of Foreign Affairs Director General Europe-2 Malik Muhammad Farooq referred Memorandum of Understanding (MoU) on implementing offshore gas pipeline project between Pakistan’s designated entity ISGS and Russian energy giant Gazprom.

The Ministry of Foreign Affairs stated that it does not support the signing of the agreement either in the presence of Prime Minister Imran or at the PM Office as the same is a commercial agreement between two commercial entities, said Farooq, adding that it would be appropriate if an alternative venue is selected.

The Petroleum Division had approached the PM Office requesting to hold the signing ceremony at the Prime Minister’s Office. In a letter, the Petroleum Division said that the petroleum secretary had spoken to the additional secretary Europe-2 ministry of foreign affairs regarding the signing of the agreement proposed to be held at Prime Minister’s office on February 6. However, the additional secretary Europe did not give any cogent reason as to why the signing ceremony should not be held at the PM Office.

According to the deal, Russia will export 500 million cubic feet per day to one billion cubic feet per day gas to meet the growing demand of gas following industrialisation under the China-Pakistan Economic Corridor (CPEC).

In the first instance, a feasibility study would be conducted by Gazprom at its own cost with no financial implications on Pakistan. Certain economic benefits such as transit fee would accrue to Pakistan if the project is implemented. Moreover, the project would bring Pakistan on the world map as the transit country for offshore gas pipelines. Besides, Pakistan will also have an option to offtake gas from the transit gas pipeline.

Russia holds huge gas deposits in Iran and has offered Pakistan and India gas exports by laying an offshore pipeline that will pass through Gwadar Port. Russia has been a big gas exporter to EU countries and Turkey since long and despite US anger, the European bloc has continued to make imports to meet its domestic needs. Moscow receives gas from Turkmenistan and then exports it to EU states. It has got and managed gas deposits in Iran as well and is looking to gain a foothold in the Pakistani market.

According to a statement, Minister for Petroleum Division Ghulam Sarwar Khan appreciated the expanding trajectory of bilateral relations between Russia and Pakistan. Khan welcomed Gazprom’s interest in off-shore gas pipeline project and termed it a manifestation of multifaceted cooperation between the two countries. This project envisages transporting of gas molecules from Gazprom’s sources in the Middle East onwards to Pakistan with a possibility of extending it further to South Asian countries.

The pipeline would follow an integrated approach including other ancillary projects such as underground gas storage, desalination and other power projects. Pakistan will import some 500 million to one billion cubic feet of gas from Russia daily, which would be transported via sea link, the agreement stipulates.

More News at EurAsian Times

 

Advertisement
Advertisement

Facebook

FEATURED

F-35-INDIA F-35-INDIA
Americas11 hours ago

Massive Flaw In US’ Stealth F-35 Fighter Jets Exposed During NATO Drills

The Lockheed Martin F-35 Lightning II is a single-seat, single-engine, all-weather stealth multirole combat aircraft designed to perform both air...

Armenia-Azerbaijan Armenia-Azerbaijan
EurAsian Region12 hours ago

Armenia Declares Martial Law, Prepares For A Possible War As Border Conflict Escalates With Azerbaijan

Due to flaring tensions between Armenia and Azerbaijan over the region of Nagorno-Karabakh, Armenia on Sunday declared martial law and...

China-aerial-space-Indian-Drone China-aerial-space-Indian-Drone
Americas19 hours ago

US Demonstrates Technology To Launch A ‘Drone From A Drone’ & Recover It Back Mid-Air

General Atomics, the American defence giant has stated that it has carried out captive carry tests of its new air-launched...

ARMY-INDIA ARMY-INDIA
Featured21 hours ago

After Ladakh, Why Gilgit-Baltistan Could Be Next Big Flash Point Between India And China?

In a bid to gain further control on the disputed Gilgit-Baltistan region, Islamabad has decided to upgrade its status as...

sharif-modi-meeting sharif-modi-meeting
Featured22 hours ago

Nawaz Sharif’s Speech Against Pakistan Army Widely Celebrated In India – Imran Khan

Pakistan PM Imran Khan denounced former PM Nawaz Sharif and stated that the opposition has only one agenda i.e. how...

INDIAN-ARMY INDIAN-ARMY
Asia Pacific1 day ago

Indian Army Has Deployed Additional 100,000 Troops Near The LAC – Top Chinese General

Despite the sixth round of Corps Commander level meeting between India and China which failed to provide any significant breakthrough,...

F18-India-Deal F18-India-Deal
Featured1 day ago

NATO Commitment Forces Germany To Acquire F-18 Super Hornets & Reduce Number Of Typhoons

German President Frank-Walter Steinmeier is looking to procure the new Eurofighter Typhoons and F-18 Super Hornets to bridge the gap...

INDIA-CHINA INDIA-CHINA
Expert Reviews1 day ago

‘Hot Winters’ Ahead – China Says PLA Needs To Teach A Harsh Lesson To ‘Insincere’ India – OPED

The portents of war between China and India seem to be getting more and more darker by every passing day....

SAAB-GRIPEN SAAB-GRIPEN
Featured2 days ago

SAAB Delivers Gripen-E Jets To Brazil; Offers ‘Exceptional Deal’ To The Indian Air Force

With India’s new FDI model under the new indigenization drive, SAAB has seen it as a lucrative offer and is...

F-35-INDIA F-35-INDIA
Europe2 days ago

After Rafale Jets, This Air Force Wants Stealth F-35s That Was Once Meant For Turkey?

While some recent reports indicated that with the arrival of F-35s, UAE cold shed some of its F-16s and sell...

Advertisement