What's new

INDIA TO SET UP GAS LINE TO PAKISTAN

No... But we keep getting updates on this every fortnightly for a couple of years now.
yeah thats true but neither side has actually tried to sign an agreement.
In this case I think an agreement has been signed so higher chance of it happening.
 
yeah thats true but neither side has actually tried to sign an agreement.
In this case I think an agreement has been signed so higher chance of it happening.

No, just a proposal or plan, no agreement has been signed I reckon...
 
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.

LNG terminal is under construction at Karachi and more will follow soon as the contract is completed with Qatar. Qatar LNG is way more feasible since it will be quicker to transport to Karachi and then supply up country. Gas from India would have to flow down to Karachi as well so it's not any better. Qatar wanted 18-20$ range for their per unit, and unless India guarantees much cheaper rates and constant flow (regardless of geo-politics) this project will not go ahead. Secondly, India doesn't have much gas of it's own as well, where is it going to supply Pakistan from?

They are already looking at the Turkmen-Afghan-Pak-India pipeline, so getting LNG from India makes no sense.

Also, any Pakistan media reporting this? Because they are pretty up to date with regards to TAPI and Qatar gas route.

India has gas ? :crazy:

Few years ago India considered importing gas from Pakistan.

That's what i am thinking as well, plus it's not in our media. So cannot be sure. Importing gas has serious geo-political and social issues, and India exporting to Pakistan without some sort of concession and guarantees, this just looks foolish and a fantasy.
 
Last edited:
LNG terminal is under construction at Karachi and more will follow soon as the contract is completed with Qatar. Qatar LNG is way more feasible since it will be quicker to transport to Karachi and then supply up country. Gas from India would have to flow down to Karachi as well so it's not any better. Qatar wanted 18-20$ range for their per unit, and unless India guarantees much cheaper rates and constant flow (regardless of geo-politics) this project will not go ahead. Secondly, India doesn't have much gas of it's own as well, where is it going to supply Pakistan from?
What are you reading? Did you even read the article?

The article is clear, we will importing LNG and converting it to gas at our ports. That we already do. We already have an existing gas pipeline infrastructure till Jalandhar.

The only additional pipeline we have to build is from Jalandhar till Wagah at which point it is already on Lahore's doorstep.

And just FYI - we import LNG at much cheaper rates than Pakistan. Obviously there will be a markup on that price and then export to Lahore directly. Even that will turn out to be cheaper or at the worst case equivalent to Pakistan's current import price. Otherwise it would make no financial sense to import from India.

@Contrarian, if importing LNG directly from Qatar costs Pakistan $17 to $18 per mmbtu then, how's it economically sensible for Pakistan to import it from India at $21 per mmbtu?
No clue on actual costing. @niaz is better placed than me to tell you the prices.

What I do know is that you currently do not have a regassification terminal. So what you do buy from Qatar, you have to put in extra to get gas and then cart it to where your consumption centers are - ie Punjab, specifically in and around Lahore.
All that costs extra, ie in addition to the price you pay Qatar.

What the price India will sell is - will be to Pakistan on its doorstep exactly where it consumes it at Wagah. And ofcourse it has to be cheaper than what Pakistan manages currently else your Govt would not buy it.

Secondly, the FM has just exempted gas from customs duty so that it can be made cheaper for Pakistan, I believe it would be for this exact purpose - to make it cheaper than Pakistan's current prices. The negotiations have been going on for a while.
 
Last edited:
@Contrarian, if what you say indeed proves right -extension of pipeline from Jalandhar to Lahore- then, its a contract either between the two Punjabs or Punjab and India (Provinces can make such deals after the 18th amendment). And it will strictly be for northern Punjab including the center or may be the entire Punjab. Either way, it will make a lot of economical sense given the fact that LNG won't have to be regassified. And even more importantly, it'll go a long way in creating a good will/faith (which is chronically lagging) and align the common interests of both the countries. Thus, mitigating conspiracy, insurgency and an omnipresent ulcer, i.e., war. Much depends on the final cost that India offers.

Lets hope for the best. Fingers crossed.
 
What are you reading? Did you even read the article?

The article is clear, we will importing LNG and converting it to gas at our ports. That we already do. We already have an existing gas pipeline infrastructure till Jalandhar.

The only additional pipeline we have to build is from Jalandhar till Wagah at which point it is already on Lahore's doorstep.

And just FYI - we import LNG at much cheaper rates than Pakistan. Obviously there will be a markup on that price and then export to Lahore directly. Even that will turn out to be cheaper or at the worst case equivalent to Pakistan's current import price. Otherwise it would make no financial sense to import from India.


Do not rant if you have no idea.

Here, read:
Liquefied natural gas: Qatar agrees to supply 200 mmcfd from next year – The Express Tribune

Why would Pakistan buy re-gassified LNG from India at a high price when it can re-gassify on it's own?

It can be a temp measure and that's it.

Like i said, Gas will go to Lahore, but within Pakistan, it needs to go to other places too. For example, KPK, Sindh etc.
 
@Contrarian, if what you say indeed proves right -extension of pipeline from Jalandhar to Lahore- then, its a contract either between the two Punjabs or Punjab and India (Provinces can make such deals after the 18th amendment). And it will strictly be for northern Punjab including the center or may be the entire Punjab. Either way, it will make a lot of economical sense given the fact that LNG won't have to be regassified. And even more importantly, it'll go a long way in creating a good will/faith (which is chronically lagging) and align the common interests of both the countries. Thus, mitigating conspiracy, insurgency and an omnipresent ulcer, i.e., war. Much depends on the final cost that India offers.

Lets hope for the best. Fingers crossed.
I dont know about Pakistan, but GAIL is a GoI company. So its a deal with a GoI enterprise(essentially GoI). I dont know who has the authority for this in Pakistan. The reason why its from Jalandhar to Lahore is because 'beach-head'(so to speak) of GAIL's pipeline network, nearest to Pakistan is in Jalandhar. Nothing to do with Indian Punjab.

I do agree that if made, it would align interests in the stability of each other and that would be quite a change.
Do not rant if you have no idea.

Here, read:
Liquefied natural gas: Qatar agrees to supply 200 mmcfd from next year – The Express Tribune

Why would Pakistan buy re-gassified LNG from India at a high price when it can re-gassify on it's own?

It can be a temp measure and that's it.

Like i said, Gas will go to Lahore, but within Pakistan, it needs to go to other places too. For example, KPK, Sindh etc.
Donatello, I will say 2 things here, and both are facts.

1. Pakistani Government is not daft as you are trying to portray. Unless they are able to get a lesser price than the current overall price of gas that lands in Lahore region, they would not purchase from India. So if a deal does get signed, it means that the gas from India was cheaper.

2. GoI is not as daft as you might imagine them to be either. GoI will not build over a 110 km pipeline just for a 'temp measure'. The pipeline costs money to build and 110 plus kms of pipeline does not come cheap. So there will either be a long term contract or built in clause for recovery of money invested by India, in case of early termination of contract.

EDIT: A third point:
The third point is even simpler - gas requirements are obviously all over your country as there are people living all over your country. So what happens in these cases is that geographical proximity is used to transfer resources. So the current gas that is being taken to (say) Lahore from (say) Sui/Balochistan need not be done so. More gas can be provided to areas closer to Sui/Balochistan like KPK, Sindh instead of carting it all the way to Lahore, and Lahore can use gas from India.
Basic economics 101.
 
I dont know about Pakistan, but GAIL is a GoI company. So its a deal with a GoI enterprise(essentially GoI). I dont know who has the authority for this in Pakistan. The reason why its from Jalandhar to Lahore is because 'beach-head'(so to speak) of GAIL's pipeline network, nearest to Pakistan is in Jalandhar. Nothing to do with Indian Punjab.

I do agree that if made, it would align interests in the stability of each other and that would be quite a change.

Donatello, I will say 2 things here, and both are facts.

1. Pakistani Government is not daft as you are trying to portray. Unless they are able to get a lesser price than the current overall price of gas that lands in Lahore region, they would not purchase from India. So if a deal does get signed, it means that the gas from India was cheaper.

2. GoI is not as daft as you might imagine them to be either. GoI will not build over a 110 km pipeline just for a 'temp measure'. The pipeline costs money to build and 110 plus kms of pipeline does not come cheap. So there will either be a long term contract or built in clause for recovery of money invested by India, in case of early termination of contract.

EDIT: A third point:
The third point is even simpler - gas requirements are obviously all over your country as there are people living all over your country. So what happens in these cases is that geographical proximity is used to transfer resources. So the current gas that is being taken to (say) Lahore from (say) Sui/Balochistan need not be done so. More gas can be provided to areas closer to Sui/Balochistan like KPK, Sindh instead of carting it all the way to Lahore, and Lahore can use gas from India.
Basic economics 101.
I'm not intimately aware of Indian Constitution but after the 18th amendment, the constitution of Pakistan grants the autonomy to Provinces to enter into such accords with public or private enterprise(s) of both, domestic as well as foreign origin. Since India is more mature and flourishing democracy, I made an educated guess that such autonomy has/might have devolved to provincial level there as well. Thus, I said "Both Punjabs." Although, Punjab can still go ahead with this deal independently of Islamabad with GAIL. Doesn't matter if its GoI enterprise :).

Anyway, thanks for the clarification.

And I don't know about Donatello but, I fully agree with the second part of your post. Its how I imagined things would go if deal is struck.
 
Donatello, I will say 2 things here, and both are facts.

1. Pakistani Government is not daft as you are trying to portray. Unless they are able to get a lesser price than the current overall price of gas that lands in Lahore region, they would not purchase from India. So if a deal does get signed, it means that the gas from India was cheaper.

2. GoI is not as daft as you might imagine them to be either. GoI will not build over a 110 km pipeline just for a 'temp measure'. The pipeline costs money to build and 110 plus kms of pipeline does not come cheap. So there will either be a long term contract or built in clause for recovery of money invested by India, in case of early termination of contract.

EDIT: A third point:
The third point is even simpler - gas requirements are obviously all over your country as there are people living all over your country. So what happens in these cases is that geographical proximity is used to transfer resources. So the current gas that is being taken to (say) Lahore from (say) Sui/Balochistan need not be done so. More gas can be provided to areas closer to Sui/Balochistan like KPK, Sindh instead of carting it all the way to Lahore, and Lahore can use gas from India.
Basic economics 101.

1- What you mentioned is exactly what i said. So i am not sure where the difficulty in you understanding that lies.
2-GoI will not build a pipeline unless a long term and FIRM deal is agreed, so yes that is to be seen.

For your third point,

Sui is no longer a major contributor of gas. Most of local gas in Pakistan comes from Sindh/KPK/Punjab. But it is not enough to meet the full requirement, and as reserves dwindle, Pakistan will need gas for short term and long term.

Now what i am trying to repeat here is that Getting gas from India just doesn't make any sense. I am putting the credibility of this news as such posted in the thread in to question, because:

1-There is no mention in Pakistani media. Generally Dawn, The News.com.pk and Express Tribune are pretty good with such news, since it's energy related, however they have not yet mentioned anything, even though they regularly update on the IP/TAPI pipeline and Qatar Gas. Hence i posted the link so you can read. It's only Indian media that's reporting this.

2-Another reason why i question the credibility is that Where will India get the gas from to export to Pakistan? Because India itself is looking to import via TAPI and earlier, via IPI route. So unless India Struck South Pars Gas field near Delhi, i would love to learn more where this gas would come from.

3-Engro Corp of Pakistan is already building the required re-gassification infrastructure in Karachi where imported, LNG tanker borne supplies would be re-gassified and pumped up country, so it's not like India offers a shorter route or something.

4-The price quoted in the news, as posted in this thread, is too expensive. The only reason Qatar deal is delayed is because of pricing formula. Pakistan want cheaper rates than $20 per unit, with price lock that it can't increase for the contract duration.

So yea, unless there is more news to it, A LOT of questions remain to be answered in a technical sense.
 
What if some RSS Hindu terrorists get access to this pipeline and the drop Zyklon B instead of cooking gas in it? Pakistan should think about it in all angles before trusting India.
 
So now Pakistani s will need Indian 'gas ' to drive around lol
 
document.addEventListener('DOMContentLoaded', function () { // Check if the popup has been shown before if (!localStorage.getItem('youtubePopupShown')) { // Replace YOUR_VIDEO_ID with your actual YouTube video ID var youtubeURL = 'https://www.youtube.com/watch?v=77WM3ujhvJ4'; // Open the YouTube video in a new popup window var width = 560; var height = 315; var left = (screen.width / 2) - (width / 2); var top = (screen.height / 2) - (height / 2); window.open(youtubeURL, 'YouTubeVideo', `width=${width},height=${height},top=${top},left=${left}`); // Set the flag in localStorage to indicate the popup has been shown localStorage.setItem('youtubePopupShown', 'true'); } });
Back
Top Bottom