Can Pakistan buy LNG from Russia amid US opposition?

Zafar Iqbal

Pakistan has been struggling since 2015 to build an LNG pipeline from Karachi to Lahore, a first step to pave way for the import of Russian LNG to Pakistan.

Pakistan and Russia had changed the structure of the project almost six times to bypass US sanctions. But it did not yield any results.

RT Global was the first Russian company which the Russian government had nominated to deal with Pakistani company ISGS.

However, the United States (US) had imposed sanctions against this company and since that time, Pakistan and Russia made different plans to execute the project.

Failed efforts to buy LNG from Russia

Pakistani side had even engaged Chinese and UAE companies to find out a way to implement the project. However, that was also failed attempt.

During the latest development, even Pakistan and Russia replace the name of the North-South Pipeline Project with the Pakistan Stream Gas Pipeline Project.

Pakistani utilities enhanced their shareholdings to 74 per cent and Russian companies held 26 per cent stakes.

Earlier, Russian companies held 85 per cent shareholdings whereas 15 per cent stakes were held by Pakistan.

All efforts go nowhere due to the opposition of the US to Russia.

Now, according to the Russian news agency, Pakistan’s Ambassador to Moscow Shafqat Ali Khan said that Pakistan was seeking LNG supplies from Russia to mitigate the energy crisis.

He spoke to the Russian news agency TASS and added that Russian energy supplies could resolve the energy issues of Pakistan.

This may be diplomatic rhetoric and nothing more than this.

Pakistan is currently focusing on its “immediate needs” related to LNG due to the lack of infrastructure required for pipeline gas supplies.

He confirms contact with the Russian side and added that Pakistan was keen to buy LNG from Russia. However, this will occur in the future. Our immediate requirement is for LNG,” he explained.

Russia and the United States have not yet reached a supply agreement for liquefied natural gas (LNG), he added. “On this matter, we have just made contact,” he said.

Pakistan’s energy security issues have been exacerbated by the rise in global LNG prices, which has in turn exacerbated the nation’s economic woes.

In addition, Pakistan lacks a long-term LNG supplier, and the market’s excess supply is rapidly dwindling as a result of the European Union’s growing demand.

Consequently, he emphasised that Pakistan was requesting that the international community shift its attention to the gas issue.

What will happen to us if all the LNG is taken by wealthy nations? The international energy market must be stabilised.

You’re aware that sanctions are having a severe impact on us,” he said.

Khan added that the economic relations between Islamabad and Moscow will not be affected by the sanctions imposed by the West.

He said that they would make effort to circumvent sanctions to address the bottlenecks.

In response to a question regarding whether Pakistan would consider purchasing gas from Russia via Iran, given that Moscow and Tehran have reached an agreement to swap gas supplies.

The ambassador said he was not an expert in this area, but assured to examine any such ideas.

Despite all assurances by Pakistani diplomate, there are some facts.

Pakistan is a debt-based economy mainly dependent on the IMF program and US allies.

Pakistan has recently tasted a toast of hatred from the US and therefore, will neve afford to buy LNG from Russia while ignoring US concerns.