Russia poised to sign $10b gas pipeline deals this week

[BHarwana]

After signing of the MoU for the offshore pipeline, work on feasibility study will begin in an attempt to assess viability of the project. Russia is even ready to finance the study. PHOTO: REUTERS

ISLAMABAD: Pakistan and Russia are set to ink agreements this week on laying an offshore gas pipeline and the North-South liquefied natural gas (LNG) pipeline – the two projects in which Moscow will pour an investment of over $10 billion, indicating a major shift in foreign policy of Islamabad.

“A Pakistani delegation will leave for Russia on December 20 to sign these deals in order to execute the two gas pipeline projects,” said a senior government official while talking to The Express Tribune.

Inter State Gas Systems (ISGS) – a state-owned company established to handle gas import matters – is working on different gas pipeline projects and its managing director and the petroleum secretary will be part of the delegation.

ISGS is also working on the $10 billion Turkmenistan, Afghanistan, Pakistan and India (Tapi) gas pipeline to connect South and Central Asia and construction work on the scheme in Pakistan will start in March next year.


These projects are called a game changer for Pakistan as they will not only lead to regional connectivity, but will also meet energy needs of the country.

Amid a long-running tussle with Europe and the United States over the annexation of Ukrainian region of Crimea, Russia is looking for alternative markets and wants to capitalise on the growing demand in South Asia.

Russia, which controls and manages huge gas reserves in energy-rich Iran, plans to export gas by laying an offshore pipeline through Gwadar Port to Pakistan and India, which are seen as alternative markets because Moscow fears it may lose energy consumers in Europe over the Crimea stand-off.

Russia has been a big gas exporter to European Union (EU) countries and Turkey since long and despite US anger the European bloc has continued to make imports to meet its energy needs.

Moscow receives gas from Turkmenistan and then exports it to EU states. Later, it has got gas deposits in Iran as well and is looking to gain a foothold in the markets of Pakistan and India.

Earlier, Pakistan and Russia had reached an understanding on signing the offshore gas pipeline deal during Prime Minister Shahid Khaqan Abbasi’s visit to Sochi, Russia. Now, during the upcoming trip, the two sides are poised to ink memoranda of understanding (MoUs) for the offshore pipeline and the North-South (Lahore-Karachi) LNG pipeline.

Pakistan has been experiencing gas shortages, particularly in winter, for the past many years as domestic production has stood static with new additions being offset by depleting old deposits.

In a bid to tackle the crisis, the present government kicked off LNG imports from Qatar under a 15-year agreement two and a half years ago and is bringing supplies through other sources as well.

“Such massive business deals will open a new avenue for closer diplomatic ties between Russia and Pakistan,” the senior government official commented.

On the other hand, Pakistan and the US are going through a critical phase in their relations in the wake of President Donald Trump’s new policy on Afghanistan, which proposes a vital role for India in this region. Pakistan has rejected the suggestion.

According to the government official, after signing of the MoU for the offshore pipeline, work on feasibility study will begin in an attempt to assess viability of the project. Russia is even ready to finance the study.

Russian gas exports touched an all-time high in 2017. According to its energy giant Gazprom, gas flows to Europe and Turkey, excluding ex-Soviet states, hit a new daily record at 621.8 million cubic metres.

Annual exports touched 179.3 billion cubic metres (bcm) in 2016, a significant jump from the previous high of 161.5 bcm in 2013 and well above the 2015 total of 158.6 bcm.

Published in The Express Tribune, December 19th, 2017.




https://tribune.com.pk/story/1587364/2-pakistan-russia-poised-sign-10b-gas-pipeline-deals-week/

 

[Enigma_]

Good news.

 

[Taimoor Khan]

Nice. No wonder yanks are breathing fire these days.

 

[BHarwana]

Huge news 10 billion dollar deal is huge.

 

[Indus Pakistan]

Whhich is going to be source for this gas?

 

[BHarwana]

Whhich is going to be source for this gas?

Russia they will probably supply from Iran as Iran gas is owned by Russian company.

 

[war&peace]

Whhich is going to be source for this gas?

Russia I guess because Pakistan is not the one. Russia supplies gas to many countries.

 

[Indus Pakistan]

Russia I guess because Pakistan is not the one. Russia supplies gas to many countries.

Yes, I know but I was asking the "source" for the gas. @BHarwana said it will be Iran which makes sense. That is only source country from which a pipeline can be built in the present circumstances. If this is true then this is fantastic news. It will create a linkage with Russia/Iran which ties nicely with China.

 

[Muhammed45]

Whhich is going to be source for this gas?

If EU refutes Russian gas, Russian economy faces serious threats.

Possibly they want to connect a pipeline to TAPI and join it with IP to dominate the central, southern Asia energy markets.

Russia they will probably supply from Iran as Iran gas is owned by Russian company.

They don't own, just a foreign investor/operator

Chinese CNPC is replacing French Total,

Russia and China are ignoring American sanctions,

 

[BHarwana]

They don't own, just a foreign investor/operator

Chinese CNPC is replacing French Total,

Russia and China are ignoring American sanctions,

Buy ownership I meant to say that Russia has rights to supply it forward.

One more thing to add that China said it will contribute funds to this project under CPEC.

 

[Indus Pakistan]

Chinese CNPC is replacing French Total,

Russia and China are ignoring American sanctions

I have never understood how a very simple idea has failed to take root. The fact is two countries on earth that are least open to US manipulation are China and Russia. And note I said "least" which implies that even can be arm twisted by USA if the stakes are high enough. But their threshold for being "pushed" by America is far higher then the rest - who either are too weak to face US pressure like Tunisia or are in with USA like Saudia Arabia and India. Both of these two will do anything to please Uncle Sam.

Given this reality I have never understood how smaller countries who are being pushed about [Pakistan] or being threatended by USA like Iran do not congregate together under a Sino-Russian block. The fact that all form significant portion of the Eurasian landmass creates solid foundations for such a grouping.

Once the group gains traction other smaller countries in Central Asia can be "mopped" away and over the longer term America influence squeezed out of Afghanistan which would be surrounded on all sides.

Therefore this news is great and a pointer to the future. But Iran and Pakistan have to work hard to create convergence and not allow sectarian fanatics spoil such a strategic benefit to all. Down the road Turkey could be brought in.

 

[BHarwana]

I have never understood how a very simple idea has failed to take root. The fact is two countries on earth that are least open to US manipulation are China and Russia. And note I said "least" which implies that even can be arm twisted by USA if the stakes are high enough. But their threshold for being "pushed" by America is far higher then the rest - who either are too weak to face US pressure like Tunisia or are in with USA like Saudia Arabia and India. Both of these two will do anything to please Uncle Sam.

Given this reality I have never understood how smaller countries who are being pushed about [Pakistan] or being threatended by USA like Iran do not congregate together under a Sino-Russian block. The fact that all form significant portion of the Eurasian landmass creates solid foundations for such a grouping.

Once the group gains traction other smaller countries in Central Asia can be "mopped" away and over the longer term America influence squeezed out of Afghanistan which would be surrounded on all sides.

Therefore this news is great and a pointer to the future. But Iran and Pakistan have to work hard to create convergence and not allow sectarian fanatics spoil such a strategic benefit to all.

To understand this and get a proper answer you have to go to Punjab Pakistan.

There is a Punjabi saying: "Mar Nah, Ullar"


This means don't hit them just scare them.

USA has been using this for a long time.

Now in case of Pakistan they were squeezing Pakistan but not enough that Pakistan jumps away and were covering their actions with foreign aid but Thanks to Trump those old tactics of USA which it learned from British colonial experience were thrown out of the window. Many people will think that Trump is disaster struck upon Muslims but I see Trump as a blessing, he showed the true face of America to the world now the local politicians cannot use the usual cover that America provided them and have to act according to their populations. Now just as Trumps Palestine decision, I have been posting about Israeli troops abducting Palestinians daily for past 6 months but no one will comment on them and very few will read them but ever since Trump made the Jerusalem decision those topics get most audience on PDF. He gave Palestinian issue new life.

 

[war&peace]

Yes, I know but I was asking the "source" for the gas. @BHarwana said it will be Iran which makes sense. That is only source country from which a pipeline can be built in the present circumstances. If this is true then this is fantastic news. It will create a linkage with Russia/Iran which ties nicely with China.

I like your DP (IVC seal/stamp/coin) speaks volumes how IVC is distinct from any Indian civilisation.

 

[xyxmt]

Yes, I know but I was asking the "source" for the gas. @BHarwana said it will be Iran which makes sense. That is only source country from which a pipeline can be built in the present circumstances. If this is true then this is fantastic news. It will create a linkage with Russia/Iran which ties nicely with China.

Two pipe lines, one from Iran and one from central Asia

 

[Path-Finder]

One question no one has raised here. What about Qatari LNG?