Prime Minister Imran Khan, on his next visit in Russia, it will take up the agenda of two mega pipeline projects there in the awakening of the country “fast- exhaustion of local reserves.
According to sources, the civil and military directions were on the same page on signing of the Pakistan Gas Stream Project and the gas pipeline from Kazakhstan project with Russia.
It was a delegation from Moscow in Islamabad recently negotiated free procedures and tax exemptions in connection with the Pakistan Gas Stream project.
The Pakistani leadership wants sign a commercial agreement with Russia during the visit of Prime Minister Imran.
Other project which is likely to be on the agenda is the gas pipeline from Kazakhstan.
According to officials, Russia had already built a gas pipeline from Kazakhstan which passes through Azerbaijan. The Russian company Gazprom completed the project up to the border with Afghanistan, but now it is facing some sanctions from the United States. Gazprom cannot export gas in no country above a certain volume.
They added that the volume allowed by the US sanctions would have been sufficient for Pakistan.
While remaining under the US sanction, Gazprom can export in Pakistan 14-15 billion cubic feet which will be enough to satisfy the country’s gas demand.
The Russian company involved in the project he had offered to supply gas from Kazakhstan to Pakistan.
Pakistan was of the view that he would not treat with the company directly and negotiate a pact with the Russian government.
According to officials, Pakistan had written a letter to the Russian government for this purpose and ready to take gas from this pipeline.
Energy Minister Hammad Azhar did it also announced to news conference that Pakistan was looking towards the gas pipeline from Kazakhstan.
Spot prices of LNG has not remained stable in the world. Therefore, Pakistan wants a long term contract for cheaper gas. The minister he had warned that that country’s indigenous gas resources were running out fast. Officials said Pakistan needs two pipelines to supply its gas requirements. Experts say Pakistan should place a cap on local gas production to guarantee it at a lower price price in the future.
Gas from Kazakhstan and the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline. project it could meet that of Pakistan current needs that will be cheaper than LNG ensure its energy security.
Pakistan and Turkmenistan had formed working groups to negotiate on gas prices of the TAPI pipeline project. The two countries had also to sign a reception agreement. However, the signature has hit a hitch. Pakistan has 5% shares and it will be responsible for maintenance of the conduct. On the gas price of TAPI officials said it would cost about $ 6-7 per mmbtu. However, Pakistan did import in media LNG price of $ 12 per million bits.
Furthermore, Pakistan believes that LNG is not a permanent solution to the country’s gas crisis. Different countries use as a stop gap provision to overcome their gas crises. Officials told TAPI project would reach 20% of the country’s gas needs, considered cheaper in comparison with import LNG in Pakistan.
Pakistan is now focusing on execution of TAPI pipeline project long with pipeline from Kazakhstan to meet his future demand.
