Pakistan Stream gas pipeline, an opportunity for Islamabad
Ibn-e-Ameer
Pakistan’s reliance on imported gas has increased at present due to the depletion of local reserves.LNG imports are on the rise. Two more LNG terminals are in pipeline which requires building Pakistan Stream Gas Pipeline.
Since the year 2000, there has been no progress in finding major reserves of gas. However, the local gas reserves continue depleting by 6.5 percent during the recent period.
However, the demand for Pakistan is continuously going up due to the increase in population.
The gas utilities are expanding their network every year with the addition of new customers.
In addition, the demand for gas for local industry is also increasing. The setting up industry in special economic zones (SEZs) under CPEC will also require more gas to feed the industrial units.
At present, two LNG terminals are operating with a total capacity of 1.3 billion cubic feet per day (bcfd).
The country is going to have two more LNG terminals with an accumulative capacity of 1.2 bcfd. However, there is no other pipeline at present to transport imported gas.
Read More: Pakistan allocates $87m for North-South Gas Project
In such a scenario, Pakistan needs one more LNG pipeline with at least 56 inches capacity to transport over 2 bcfd gas.
Therefore, the Pakistan Stream gas pipeline Project (formally know North-South Gas Pipeline Project) is the best option for Pakistan.
Pakistan and Russia had signed an inter-governmental agreement in 2015.
Despite hurdles, Pakistan and Russia are close to signing commercial agreements to kick off construction work on the Pakistan Stream Gas Pipeline project.
Recently, Pakistan and Russia have signed a revised inter-governmental agreement relating to the Pakistan Stream project.
The Russian team had also visited Islamabad and held successful negotiations to execute this project.
Why Islamabad should do this project
Pakistan Stream Project has significance on two fronts. Firstly, Pakistan needs this project to feed the gas to different sectors of the country.
The development of two new LNG terminals is underway. Therefore, the country needs this project to make two new LNG terminals operational.
This project will help to transport imported gas from Karachi to Lahore.
The geopolitical importance of this project
This project has also geopolitical importance. This project will help strengthen the bilateral relations between the two countries.
Pakistan needs investment in different sectors especially energy.
Russia is an energy-rich country. It will not only build pipelines but will help to transfer modern technology to Pakistan in the energy sector.
Russia has dominance in Central Asian states. Pakistan is also making footprints in central Asian states like Tajikistan, Uzbekistan, and Azerbaijan.
The entire region is a big market for any country. The normalization of relations between Pakistan and Russia may be helpful in capturing the market for exports.
Pakistan has been relying on conventional markets of the Middle East, United States, and EU countries.
The good relations between Pakistan and Russia will open new markets for Pakistani exporters.
So, Pakistan should never compromise on Pakistan Stream Gas Project that is a key for the two countries for future relations.
