• Tuesday, December 10, 2019

INDIA TO SET UP GAS LINE TO PAKISTAN

Discussion in 'Pakistan Economy' started by Rahul9090, Jul 11, 2014.

  1. Rahul9090

    Rahul9090 FULL MEMBER

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    India’s plans of exporting gas to Pakistan via a pipeline from Jalandhar inPunjabto the Wagah-Attari border will soon become a reality.

    In his maiden Budget presented in the Lok Sabha on Thursday, finance minister Arun Jaitley exempted liquefied natural gas (LNG) imports from customs duty if it is meant for onward sale to the neighbouring nation.

    “Exemption from basic customs duty (of 5%) is being granted on re-gassified LNG for supply to Pakistan,” the Budget said.

    This will set the stage for the state-run Gail India Ltd, which plans to build a `500-crore pipeline to export five million units per day of regassified-LNG to Pakistan, to start work on the ground.

    “Its an important project that will help improve bilateral diplomatic and economic ties between the two neighbours,”Dharmendra Pradhan, minister of state for petroleum, told HT.

    “Broad parameters have been agreed to and a contract will also be signed shortly between the two sides after which it will take one year to build it,” Gail CMD BC Tripathi told HT.

    Interestingly, citing security concerns,New Delhihas put on hold a plan to be part of a `10,000-crore pipeline originating in Iran, passing through Pakistan and terminating in India to carry gas from Iran’s South Pars gas fields. Security experts felt that being dependent on gas coming via Pakistan could compromise India’s energy security.

    But the Gail pipeline will be built entirely on Indian territory and terminate at the border, thus, making it relatively safer.

    Faced with a serious gas shortage, Pakistan wants to import gas from India. Gail will import LNG in ships at ports on the Indian west coast and then pipe the gas to Jalandhar. The proposed 110-km pipeline will then carry the fuel to the Wagah-Attari border, from where Pakistan will supply it to Lahore.

    The source added that Gail, which imports LNG at $13-14 per unit, would sell the gas to Pakistan at around $21. The cut in customs duty will bring down the cost.



    Not just a pipe dream, India to set up gas line to Pakistan - Hindustan Times
     
  2. itduzz

    itduzz FULL MEMBER

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    ghaas kha lain gain...hindoyoon ki gas say khana nahi pakain gain
     
  3. Menace2Society

    Menace2Society BANNED

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    No need, plenty of gas being produced on PDF by Indian posters.
     
  4. NKVD

    NKVD BANNED

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    :eek::eek::eek::eek::D:D:D:D
     
  5. Donatello

    Donatello PDF THINK TANK: ANALYST

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    Pakistan cannot buy gas at 21$ per unit, other wise it would have taken Qatar's offer at 18-19$ per unit.
     
  6. cb4

    cb4 ELITE MEMBER

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    India has gas ? :crazy:

    Few years ago India considered importing gas from Pakistan.
     
  7. Contrarian

    Contrarian ELITE MEMBER

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    Read the article before posting.

    I believe you don't have an LNG terminal with re-gassification(?) facilities.
    So whatever price you buy from Qatar,it gets pushed up before you get to use it.

    Secondly, the price of $21 should come down now that FM has exempted customs duty for Pakistan.
     
    Last edited: Jul 12, 2014
  8. FaujHistorian

    FaujHistorian ELITE MEMBER

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    India is plannign to buy LNG at $13. so add some markup and that will be cheaper for Pakistan than to buy from Qatar.
     
  9. KingMamba

    KingMamba ELITE MEMBER

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    Horrible move Nawaz should and probably will reconsider.
     
  10. Contrarian

    Contrarian ELITE MEMBER

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    Yup. It has to be cheaper than what Pakistan can buy from Qatar + extra(on account for not investing in LNG facilities), otherwise it would make no sense for Pakistan to buy from India.

    Secondly, Faujhistorian - India buys some gas at $13. Otherwise its mostly higher, the one from Qatar. Though we still get better deal than most countries in the world because we buy in massive quantities.
    Not really horrible. Its not as if Pakistan's entire gas needs would come from this. Pakistan is diversifying its suppliers for security purposes, just as India has done so. We buy from multiple sources in addition to our own production.

    @niaz Sir would be the best person to give his views on this though.
     
  11. Emmie

    Emmie MODERATOR

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    I am afraid this gas pipeline will remain in pipeline just like the electricity!
     
  12. livingdead

    livingdead ELITE MEMBER

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    has there been MoU signed to import electricity from India?
     
  13. Emmie

    Emmie MODERATOR

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    No... But we keep getting updates on this every fortnightly for a couple of years now.
     
  14. KingMamba

    KingMamba ELITE MEMBER

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    Doesn't matter buying from India does not provide any sort of security LOL.
     
  15. Contrarian

    Contrarian ELITE MEMBER

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    Not all security threats are the same.
    It provides an additional layer to Pakistan, that is all. The amount of gas is also not very big.