After the ditching of the Chinese led consortium to undertake Iran-Pakistan (IP) gas pipeline project due to stern US warnings, Pakistan has decided to approach Russian energy giant Gazprom for the construction of the pipeline.
Secretary Petroleum Ejaz Chaudhary talking to journalists on Wednesday said that a Pakistani delegation will be visiting Moscow on April 2 to hold two days talks with Gazprom for laying IP pipeline. He said the discussion will also include financing of the project. He said if the deal materializes it would be on the government to government basis.
Russian firm, he said, is keen to develop the IP project and has already submitted Expression of Interest last year for the project. Pakistan and Gazprom have already singed a Memorandum of Understanding (MoU) on the project in 2005. If the project moves ahead, Pakistan will import 750 million cubic feet of gas per day for 25 years from Iran.
Gazprom, he said has assured Pakistan its willingness for the construction of IP pipeline as well as Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project. Gazprom owns the world’s largest gas transmission network and sells more than half of overall produced gas to Russian consumers and exports gas to more than 30 countries within and beyond the former Soviet Union. Russian firm pursues the strategic objective of establishing itself as a leader among global energy companies by entering new markets, diversifying its activities and ensuring reliable supplies.
About the import of POL products from India, he said that the matter was discussed with his Indian counterpart at the sidelines of the 7th Asia Gas conference in New Delhi. He said that the matter could be resolved after Pakistan formally grants MFN status to India.
Secretary Petroleum said both the countries will be holding talks on POL imports in the third week of April. Pakistan plans to import petrol and lubricants from India but it was still subject of MFN approval. He said POL imports from India will decrease the inland freight equalization margin (IFEM) by 35 percent.
In reply to a question of TAPI pipeline, he said the four participating countries will be meeting on April 19 to finalise the various remaining issues for the execution of the project. He said Pakistan has proposed to India that it will be charging the same transit fee as she will be giving to Afghanistan. He hinted that the price would be around 50 cents per million British Thermal Units (mmBTU).
He said India has appreciated Pakistan’s suggestion but has yet not accepted the proposal. He said Afghanistan has refused to purchase TAPI gas, therefore India and Pakistan were interested to purchase additional gas and an Indian delegation will visit Pakistan to discuss the matters.
To Russia with love
