Pak Stream Project to Mark a new chapter of Pak Russia Ties
Ibn-e-Ameer
The Pakistan Gas Stream Pipeline is a symbolic project whose completion marks the beginning of a new chapter in Pakistan-Russia relations.
This is what experts believed. Should Pakistan compromise on this project under the United States (US) pressure? I am sure the answer should be no.
The different countries prioritize their relations based on their economic needs. They never compromise on their economic development.
Can you believe that European (EU) countries that have been part of the United States (US) alliance are the largest importers of Russian gas?
In the early 1980s, the Reagan administration went to great lengths to persuade the EU to reject Russian pipelines.
According to Regan’s administration, a Kremlin-controlled European natural gas pipeline infrastructure would increase Russia’s footprints in Eastern Europe and Western Europe.
Despite US protests, EU countries continued work on gas pipeline projects from Russia, and gas supply started in 1990.
Pakistan allocates $87m for North-South Gas Project
So, what was the crux? EU countries had conveyed to the US that they would not compromise their economies. They feared their rising economies would collapse without gas.
Even now, Russia is the largest exporter of gas to the EU. The entire EU can be choked if Russia’s gas supplies are halted.
Germany is currently working on the Nord 2 gas pipeline with Russia. During the Second World War, two countries were crucial adversaries.
They are now working on the additional gas pipeline by burying the past.
Former US President Donald Trump had also threatened to halt construction on the gas pipeline if Germany did not comply. However, Germany did not bother.
According to reports, the US is a crucial importer of oil from Russia. It had imposed sanctions on US companies over the Ukraine issue. However, in the meantime, it allowed third-party contractors to take oil supplies from Russia.
In this background, Pakistan should never compromise on its economy, which needs gas.
Punjab is a gas-scarce province in desperate need of gas.
There is only one pipeline from Karachi to Lahore that can transport imported gas to Punjab.
There are two LNG terminals with 1300 mmcfd operating in the country.
Two more LNG terminals in the pipeline need a mega channel to transport additional imported gas from Karachi to Lahore.
The share of LNG in Pakistan has increased to 24 percent. PTI government had managed to overcome the gas crisis in the winter seasons due to LNG imports.
No doubt, spot purchases of LNG have been a problem for Pakistan.
Moreover, the deal with LNG traders had also caused problems for Pakistan, which defaulted on LNG supplies.
However, Qatar being an LNG producer had given additional LNG cargoes when LNG traders had defaulters during the winter season during the last months of last year.
PakStream is a strategic project?
Therefore, Pak Stream Gas Pipeline Project has been a strategic project for Pakistan.
It will open new avenues for cooperation with Russia, which is rich in energy sources.
It also has modern defense and information technology that can transfer to Pakistan.
India has never compromised its relations with Russia, forsaking for the United States (US).
Pakistan should also follow a policy of putting eggs in all baskets rather than in one basket for better survival.
Moreover, Pakistan has been dependent on oil-producing countries to meet its needs.
Now, Qatar has emerged on the LNG map for the supply of gas to Pakistan.
US has imposed sanctions on US firms like RT Global to execute Pak Stream Gas Pipeline Project.
Pakistan now owns 74% of the shares, while Russian companies hold 26% of the claims under the new structure.
During the implementation of this project, Russia has agreed to transfer technology and expertise to Pakistani companies such as SNGPL and SSGC to complete a 56-inch-diameter mega pipeline project.
As a result, Pakistan should make every effort to counter US pressure on the Pak Stream Project and realize the project’s potential to provide new avenues and options for energy supply to the country’s economy.
