Russian gas giant may fund 780-km pipeline

[genmirajborgza786]

Russian gas giant may fund 780-km pipeline
Amanullah Khan


Karachi—The Iran-Pakistan gas pipeline projects have attracted global investors, technical experts eyeing to participate in this economically lucrative energy project.

In this respect Abu Dhabi state-run company International Petroleum Investment, and China National Petroleum Corp. (CNPC) have all shown interest in the project to construct an Iran-Pakistan gas pipeline, said informed sources.

Russian gas-export monopoly Gazprom may fund and help build the 780-kilometer Iran-Pakistan gas pipeline.

Pakistan plans to borrow $300 million from local banks to build a pipeline that will carry natural gas from Iran in order to resolve its serious energy crisis while local state-owned companies will provide about $210 million in equity for the $1.3 billion pipeline

Pakistan may approach foreign companies including OAO Gazprom, International Petro-leum Investment Co. and China National Petroleum Corp. for the rest of the financing, it is learnt. Sources were of view that the local funding is crucial for the project because of pressure on Western banks and international agencies to isolate Iran.

Acute fuel shortages persisting for quite a few years have forced the government to ration sup-plies, cutting power for as much as half the day in major cities yet the bill for electricity con-sumption were highly inflated not less than two months consumption.

It may be mentioned that under an accord signed in June 2010, Iran will provide about 21.5 million cubic meters of gas a day to Pakistan for 25 years. The deal can be extended by five years and volumes may rise to 30 million cubic meters a day. Pakistan’s gas shortfall is forecast to reach 2.22 billion cubic feet a day in the fiscal year that began July 1, according to government data. The shortage has forced the government to ration supplies to cars that run on compressed natural gas, while the biggest cities have faced blackouts for as long as 12 hours a day. Last year, 53 percent of Pakistan’s energy came from natural gas, 30 percent from oil and the rest from coal, nuclear and hydropower, according to data from BP Plc. ****-stan produced 39.5 billion cubic meters of gas in 2010, or 3.8 billion cubic feet a day.

The Iran-Pakistan gas pipeline is a delayed project lingering on for over a decade but the pressures from West especially the US this badly needed project in the face of ever deteriorat-ing energy situation in Pakistan the US pressures would not allow to accomplish this vital projects unless normalcy returns in US-Iran relationship.

Russian gas giant may fund 780-km pipeline

 

[humanfirst]

Didn't Chinese pull off from the IP pipeline due to fear of sanctions..?Dont sanctions affect GAZPROM if they commit to fund Iran-Pakistan pipeline?(Considering the fact that GAZPROM does more business with EU than the chinese who pulled off..)

 

[genmirajborgza786]

Didn't Chinese pull off from the IP pipeline due to fear of sanctions..?Dont sanctions affect GAZPROM if they commit to fund Iran-Pakistan pipeline?(Considering the fact that GAZPROM does more business with EU than the chinese who pulled off..)

sanctions apply if one build on the Iranian side & Iran has already completed its side of the construction, only Pakistan's side needs construction which is not under sanctions

 

[VCheng]

............
Russian gas-export monopoly Gazprom may fund and help build the 780-kilometer Iran-Pakistan gas pipeline.....................
Russian gas giant may fund 780-km pipeline

It may. Then again, more likely that it may NOT.

 

[surya kiran]

There are multiple dimensions to this deal.

1. Saudi Arabia - It has offered Pakistan a deal in place of the Iran gas. And SA has in the past come to Pakistan's rescue. What will the implication of proceeding with this deal?

2. US - Obviously, not very pleased. Expect punitive measures if the pipeline is laid inthe form of blocks in IMF, WB and other international financial organisations. Where it will hurt is if they start putting restrictions on Pak exports.

3. China - Being China, being cautious. Does not want to risk being involved in a high risk scenario. And the Chinese do not give free loans.

4. Russia - Not interested in bidding. Want the pipeline to be handed over to them. Theoratically the best option to Pakistan. Because, Russia will not bother about US screams. If there is too much trouble, all it will require is shutting off the taps to Europe in November. But, the important thing is, would they not be more interested in the TAPI pipeline? This pipeline can in the future be extended further north. Now, is the demand of saying we won't bid a delay tactic? But, they also know that if they support Pakistan they get an entry in to Pakistani territory. Its a win-win for the Russians. Act interested in building it, but, they don't lose anything if they don't get it.

5. Pakistan - 2014 is quickly approaching. Post which the penalty clause kicks in. The survey will be compelted in Oct 2012. Construction will start in Dec 2012. Now, is 2 yrs sufficient to complete construction of a 1,000 km pipeline through the terrain we are talking about? Does Pak have the steel mills ready to churn out the pipes required at the required rate? More importanly, can Pakistan today get a better rate from Iran for the gas for the risk it is today taking?

Any comments?

 

[Trisonics]

Anything coming from PAK media that cannot be verified by another news source should not be taken seriously. Recently, they published grand news about Linked in setting up huge offices in PAK for just saying something about "potential". This news was denied by Linked in a report. Pakistan's media is world famous for cooking news. Lets not forget the fake news they spread about India and the wiki leaks.

 

[Kompromat]

Russian attachment will add another political factor, means the pipeline will become more harder to curb.

 

[VCheng]

Russian attachment will add another political factor, means the pipeline will become more harder to curb.

One can assume Russian involvement only after a contract is signed and the project financed, not before. When is the signing?

 

[Kompromat]

One can assume Russian involvement only after a contract is signed and the project financed, not before. When is the signing?

Depends on what Kiyani does in Moscow.

 

[VCheng]

Depends on what Kiyani does in Moscow.

Isn't the pipeline a civil project? It does not fall under Gen Kayani's purview, at least on the face of it.

 

[SHAMK9]

getting tired of these 'may's.

 

[somebozo]

for the 10000th time...
Zardari & Co uses this tactics to fool the desperate nation - a water car like fraud just at most sophisticated and believable level.

Importing NG from Iran is at the moment unfeasible - better to concentrate on imports of LPG. Which is cheaper, safer, easier and denser in energy contents.

 

[Kompromat]

Isn't the pipeline a civil project? It does not fall under Gen Kayani's purview, at least on the face of it.

I meant how much confidence we can build with Moscow through Kiyani. Military is a big factor in Pakistan, you know that!

 

[VCheng]

I meant how much confidence we can build with Moscow through Kiyani. Military is a big factor in Pakistan, you know that!

That is indeed Pakistan's tragedy.

Moscow's involvement with Pakistan will remain measured and certainly not to the extent presently being portrayed and hoped for by Pakistan.

 

[MilSpec]

Depends on what Kiyani does in Moscow.

COAS for oil pipeline, shouldn't the FM or PM be there for this