Featured Pakistan and Russia signed the Agreement on North-South Pipeline Project

[farok84]

26 NOV, 18:50

Pakistan Stream’s capacity to reach 16 bln cubic meters, says Russian energy chief

Earlier, it was announced that the capacity of the pipeline would be 12.4 bln cubic meters


YEKATERINBURG, November 26. /TASS/. The capacity of the Pakistan Stream gas pipeline may reach 16 bln cubic meters instead of the previously-announced 12.4 bln cubic meters, according to Russian Energy Minister Nikolai Shulginov who spoke at a meeting of the intergovernmental commission on trade cooperation with Pakistan.

"The flagship project is the construction of the Pakistan Stream gas pipeline from Karachi to Lahore spanning over 1,100 kilometers with the throughput capability of up to 16 bln cubic meters per year, which will connect LNG ports in Karachi with industrial gas consumers in the country’s north," he said.

"Hopefully, the shareholder agreement and the agreement on providing help to the project by the Pakistani government will be signed by February 15, 2022, as we had agreed on with the minister (Minister for Economic Affairs of Pakistan Omar Ayub Khan - TASS)," Shulginov added.

Russian companies can supply liquified natural gas for the project in the future, he noted. "We believe that today a decision has been made to move towards the start of the construction, and that there will be proposals from Novatek on LNG supplies," the minister said.

Omar Ayub Khan noted that Pakistan is ready to consider the participation of Novatek and Gazprom in the construction of the new regasification terminals for Pakistan Stream. "Two more private terminals will be required, there is no limit of intent here, so by all means, we are ready to discuss the construction of new terminals," he said, replying to a question on the matter.

"We suggest that the rates are good, and we expect the shareholder agreement on the implementation of the project to be signed in February, after which the search for bank financing will start," Shulginov concluded.

The intergovernmental agreement on the construction of the 1,100-km-long Pakistan Stream (formerly known as the North-South) gas pipeline with a capacity of 12.4 bln cubic meters of gas per year (which may be increased to 16 bln in the future) was signed by Russia and Pakistan in October 2015. The sides were supposed to sign commercial agreements in 2016, and it was planned to deliver the project by 2018. However, the project’s implementation had been rescheduled several times.

Shulginov and Pakistani Ambassador to Russia Shafqat Ali Khan signed a document enabling the start of the practical implementation of the Pakistan Stream gas pipeline construction project on May 28, 2021.

https://tass.com/economy/1366947

 

[farok84]

Gas pipeline projects among PM’s Russia visit agenda​

Islamabad keen to sign Pakistan Gas Stream Project and pipeline from Kazakhstan project with Moscow

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Zaffar BhuttaFebruary 17, 2022

Prime Minister Imran Khan receives a telephone call from Russian Federation President Vladimir Putin on August 25. PHOTO: FILE

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ISLAMABAD:
Prime Minister Imran Khan, during his upcoming visit to Russia, will take up the agenda of two mega gas pipeline projects there in the wake of the country’s “fast-depleting” local reserves.
Sources told The Express Tribune that the civilian and military leaderships were on the same page on signing the Pakistan Gas Stream Project and the gas pipeline from Kazakhstan project with Russia.

A delegation from Moscow was in Islamabad recently to negotiate toll-free proceedings and tax exemptions in connection with the Pakistan Gas Stream Project.
The Pakistani leadership wants to sign a commercial agreement with Russia during PM Imran’s visit.

Another project which is likely to be on the agenda is the gas pipeline from Kazakhstan.
Officials said Russia had already built a gas pipeline from Kazakhstan that passes through Azerbaijan. Russian company Gazprom has completed the project up till the Afghanistan border but now it is facing certain sanctions from the US. Gazprom cannot export gas to any country above a certain volume.

They added that the volume allowed under US sanctions would be enough for Pakistan.

Even remaining under the US sanction, Gazprom can export 14-15 billion cubic feet to Pakistan which will be enough to meet the country’s gas demand.

The Russian company involved in the project had offered to provide gas from Kazakhstan to Pakistan.

Pakistan was of the view that it would not deal with the company directly and negotiate a pact with the Russian government.

The officials said Pakistan had written a letter to the Russian government for this purpose and ready to take gas from this pipeline.

Energy Minister Hammad Azhar had also announced at a news conference that Pakistan was looking towards the gas pipeline from Kazakhstan.

The spot prices of LNG have not remained stable in the world. Therefore, Pakistan wants a long-term contract for cheaper gas.

The minister had warned that that country’s indigenous gas resources were depleting fast.
The officials said that Pakistan needs two pipelines to meet its gas requirements.
Experts say that Pakistan should place a cap on local gas production to secure it at a cheaper price in the future.

Gas from Kazakhstan and the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline project may meet Pakistan’s current needs that will be cheaper than LNG to ensure its energy security.

Pakistan is also moving ahead to complete TAPI gas pipeline project.

Pakistan and Turkmenistan had formed working groups to negotiate on the gas prices of the TAPI pipeline project.

The two countries had also to sign a host agreement. However, the signing has hit a snag.
Pakistan has 5% shares and will be responsible for maintaining the pipeline. On the gas price of TAPI, officials said it would cost around $6-7 per mmbtu. However, Pakistan has been importing LNG at an average price of $12 per mmbtu.

Moreover, Pakistan feels that LNG is not a permanent solution to the country’s gas crisis. Different countries use it as stop gap arrangement to overcome their gas crises.

Therefore, Pakistan is now focusing on the execution of TAPI pipeline project along with gas pipeline from Kazakhstan to meet its future demand.

The officials said TAPI project would meet 20% of the country’s gas requirement -- which is considered to be cheaper in comparison with importing LNG to Pakistan.

Gas pipeline projects among PM’s Russia visit agenda | The Express Tribune

Islamabad keen to sign Pakistan Gas Stream Project and pipeline from Kazakhstan project with Moscow

tribune.com.pk

 

[farok84]

Pakistan presses ahead with Russian-built gas pipeline

Islamabad strains ties with the west after refusing to condemn Moscow’s invasion of Ukraine.

Pakistan’s Prime Minister Imran Khan visited President Vladimir Putin in Moscow on the same day that Russia invaded Ukraine © Reuters

Benjamin Parkin and Farhan Bokhari in Islamabad 15 HOURS AGO

Pakistan plans to finalise a Russian-built gas pipeline despite international pressure to isolate Moscow economically, as the US ally searches for alternatives to ease a domestic energy crunch.

Finance minister Shaukat Tarin told the Financial Times that a deal with Russia to build the multibillion-dollar Pakistan Stream pipeline “is almost done”. Also known as the “North-South” project, it will transport liquefied natural gas from the southern port city of Karachi to Pakistan’s north.

“We need a gas pipeline to transport LNG from south to north. That’ll become almost essential for us in the next two or three years,” he said. “Either there’s an alternative for us or we’ll go ahead with this deal . . . This is the best alternative as of now, and this was obviously done before Ukraine.”

Pakistan, a western ally during the cold war and during the post-2001 “war on terror”, has refused to condemn Russia’s invasion of Ukraine despite public pressure from the EU, UK and others. Prime Minister Imran Khan said he “regretted” the conflict but wanted to remain neutral.

Islamabad has drifted closer to Moscow in recent years, partly as authorities look for ways to shore up energy security and believe jeopardising ties with Russia would be too costly. While Pakistan produces gas, in recent years it has also started importing from the Gulf as energy demands rise.

The EU, too, needs Russia’s energy sector, sourcing about 40 per cent of its gas from the country. The bloc has announced plans to cut imports by two-thirds this year.

But Pakistan’s relationship with Russia risks straining links with the west. Khan visited Moscow on the same day Russia invaded Ukraine last month. It was the first visit by a Pakistani prime minister in more than 20 years.

The EU, UK, Australia and others “urged” Pakistan to condemn Russia in a UN General Assembly vote. Pakistan abstained from the vote, with Khan attacking the western countries at a campaign rally for treating Pakistanis like “slaves”.

Tarin said he hoped Russian officials would soon visit the country to finalise the deal for the Pakistan Stream pipeline following Khan’s Moscow visit. The pipeline, to be built by a collection of Russian companies, is estimated to cost more than $2bn.

Well before the latest surge in oil and gas prices, Pakistan was struggling with a widening current account deficit and double-digit inflation exacerbated by rising global commodity prices. Pakistan last month resumed a contentious $6bn IMF programme to stabilise the country’s balance of payments and shore up government revenues.

But Tarin said the conflict presented a new “crisis” that would push up the cost of imports including energy and wheat, which Pakistan previously sourced from both Russia and Ukraine. Higher prices following the US ban on Russian oil and gas imports would affect Pakistan “very negatively” unless Washington unlocked alternate energy sources, he said. Energy makes up about a quarter of Pakistan’s import bill.

He added that a nuclear deal between the US and Iran would allow Islamabad to revive a plan to build a pipeline delivering gas directly from Iran to neighbouring Pakistan, which is suspended because of international sanctions. “If there’s a deal . . . this is the cheapest [option]. It’s next door,” he said. “It’ll be very good for us.”

Tarin said it was “only fair that people should respect” Pakistan’s “neutral” stance. The west “have been our allies for a very long time. We’re listening to them, but we told them, ‘Listen, we don’t believe in taking sides. We’re with you as much as China and others’,” he added.

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[farok84]

https://twitter.com/x/status/1523347507933196288

 

[Sinnerman108]

https://twitter.com/x/status/1523347507933196288

and they will keep dragging their feet,
I will be very surprised if the PDM gov has the will or guts to go ahead with this.

TAPI is an american project, and they would mostly turn to that, rather than allowing Russia a sales corridor.

 

[farok84]

https://tass.com/economy/1523717

17 OCT, 16:39

Pakistan Stream pipeline project could start in 2023 — Pakistan's Ambassador to Russia​

The intergovernmental agreement on construction of the North-South gas pipeline (the Pakistan Stream) was signed by Russia and Pakistan in October 2015

MOSCOW, October 17. /TASS/. Pakistan’s Ambassador to Moscow Shafqat Ali Khan hopes that the construction of the Pakistan Stream gas pipeline can begin in 2023 and the tone for this process will be set by the intergovernmental commission of the two countries [Russia and Pakistan] next January.

"I hope so (start of construction in 2023 - TASS), but the intergovernmental commission will set the tone," the diplomat said responding to the relevant question in an interview with TASS.
He noted that as the ambassador he is trying "to facilitate the process of interaction."
Shafqat Ali Khan stressed that Islamabad considers this project a strategic one and in terms of the political will of the parties there are no obstacles to its implementation. However, there are difficulties on other levels.

"The problems we are facing right now are on a different level - these are procedural, legal, financial issues which are not critical. The main thing is that the project remains on track in terms of the political will of the two governments and recently Prime Minister Shehbaz Sharif and President Putin had an excellent meeting in Samarkand, the summit meeting. The two sides reiterated that they are determined to move forward," the Ambassador said.
The intergovernmental agreement on construction of the North-South gas pipeline (the Pakistan Stream) was signed by Russia and Pakistan in October 2015. The project implementation timeframe has been repeatedly postponed since then.

On May 28, 2021, Russia’s Energy Minister Nikolay Shulginov and the Ambassador of Pakistan to Russia signed a document that will make it possible to start implementation of the Pakistan Stream gas pipeline construction project in the near future.