ISLAMABAD: Russian company Gazprom is to lay down a $10 billion undersea gas pipeline not specifically for Pakistan but for the region that initially will be laid down from the Persian Gulf up to India touching Pakistani waters and Bangladesh’s coastal areas.
‘’So the impression that building a $10 billion undersea gas pipeline is investment for Pakistan is wrong, as it is for other regional countries as well,’’ a top official at the Petroleum Division confirmed to The News.
Pakistan and India have already signed MoUs and agreements with Russia separately for the project under which both countries would get gas from the undersea pipeline through the spur pipelines.
However, the three countries, Pakistan, India and Bangladesh, will benefit from the $10 billion Russian investment as buyer countries. Managing Director Inter-State Gas System Mobin Saulat also confirmed that the undersea pipeline would be laid down with an estimated investment of $10 for the regional countries. However, in the same breath he said, “Since the undersea pipeline will provide gas up to 1bcfd, so it is investment for Pakistan too.’’
And more importantly, Pakistan will also get transit fee in dollar terms for the undersea pipeline that is to pass through Pakistan’s sea territory. He also said Russia-Pakistan economic corridor will also be set up and Russia will also invest in fiber optic link, roads and power projects as ancillary facilities.
Saulat said Pakistan will take the gas up to 1bcf per day when the said pipeline will come on stream with massive rollover impact on economy. Russia is already engaged with Pakistan on North South Gas Pipeline, which will cost $2-2.5 billion. However, Gazprom has also shown interest in building gas storages in Pakistan with investment of $400-500 million.
Russia is also interested in investing in exploration and production activities in Pakistan and to this effect Gazprom is currently engaged with the top management of OGDCL.
However, under the agreement, another top Petroleum Division official said Gazprom Company from gas deposits in Iran and in other Middle East countries owned by Russia will ensure gas sourcing in the pipeline for the said buyer countries. The buyer countries under separate agreements with the said Russian company will have gas intakes from the said pipeline.
The official said Pakistan will share its credible data with Russian company about the demand of gas with future projections in next one decade keeping in view existing pricing structure, and regulatory and taxation regimes. The data for demand would be worked out keeping view the renewable power policy and future LNG terminal being installed by private companies.
‘’The same data India will provide to Russian company too.’’ After having the required data from Pakistan and India, the Russian company will ink commercial agreements with buyer countries. Based on data from both the countries, Gazprom will carry out the feasibility and the whole process staring from sharing the data to completion of feasibility report will be finished in one year time and if the project is found feasible, then the pipeline will be laid down undersea in 3-4 years. The official said under TAPI gas line project, Pakistan will be having 1.3bcf per day.
To a question, the official said that Pakistan had the option to build spur pipeline to connect the undersea pipeline and the spur pipeline will be connected to S-N pipeline. Russia may build spur pipeline also and connect to S-N pipeline which is also to be constructed by Russian company.
