Why Should Pakistan execute TAPI pipeline Project

Ibn-e-Ameer

Pakistan has been facing a threat of energy crisis, especially in the winter seasons.

In the current winter season, the situation is not different. Pakistan’s local gas production has been static over the last two decades. There has been no increase in indigenous production.

Pakistan has been dependent on LNG which is considered to be ‘an interim arrangement’. According to a study, different countries meet around 6 percent of their needs through LNG.

However, LNG is not a permeant source of meeting energy needs due to price volatility. However, long terms agreements give benefits but they are also not reliable sources.

Pakistan had long-term agreements with ENI and Gunvor. However, they defaulted due to a shortage of gas in the world.

Pipeline gas in the world has been a reliable source of gas supply as Russia and Turkmenistan are supplying it to different countries. This is a secure source of gas supply at lower rates.

Pakistan, Russia Pledge to execute Gas Stream Pipeline

Pakistan has been working on Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project, believed to be an energy corridor between two regions.

This project will not only help meet the energy needs of Afghanistan, Pakistan, and India but would open new avenues of cooperation.

The central Asian market has been untapped for Pakistan. This project will strengthen cooperation between Pakistan and Turkmenistan especially the central Asian States.

Pakistan, Russia Pledge to execute Gas Stream Pipeline

Thirdly, it will make participating countries inter-dependent which would be a good sign of strengthening relations especially between arch-rivals Pakistan and India.

Role of United States (US)

The US had backed the TAPI pipeline project in opposition to the Iran-Pakistan (IP) gas pipeline project. However, it reportedly involved in the domestic politics of Turkmenistan.

According to reports, the US has been backing the opposition political party in Turkmenistan against the ruling party that has been a major concern for the current government.

Officials say that despite the present role of the US, participating countries including Pakistan should execute this project that would be a milestone in strengthening bilateral relations.

In addition, Turkmenistan had also offered Pakistan to export electricity. If Pakistan executes TAPI pipeline project, it will pave way for energy cooperation in the area of electricity trade.

Pakistan could also export electricity to Turkmenistan and any other Central Asian states in case it has surplus power.