ISLAMABAD – In a major breakthrough, Pakistan and Russia will sign a$10-billion offshore gas pipeline deal tomorrow (Wednesday) in Moscow.
After the signing of a Memorandum of Understanding between the two Asiancountries, for which a delegation of Petroleum Division has been dispatchedto the Russian capital, a feasibility study will be conducted by Russianenergy giant Gazprom.
Inter State Gas Systems (ISGS) – a state-owned company of Pakistanestablished to handle gas import projects and is already working on gaspipeline schemes like Tapi, has been nominated by Pakistan to execute theoffshore pipeline project along with Gazprom.
ISGS is also working on the $10-billion Turkmenistan, Afghanistan, Pakistanand India (Tapi) gas pipeline to connect South and Central Asia andconstruction work on the scheme in Pakistan will start in March next year.
According to the agreement, Pakistan is expected to buy some 500 million to1 billion cubic foot from Russia daily.
The underwater pipeline will be completed in three to four years.
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Russia currently exports huge quantities of gas to Europe and Turkey. Thisproject is an alternate for Russia in case those exports go cold. Despitethe US sanctions, Russia has been a major exporter of energy to Europe.
Amid a long-running tussle with Europe and the United States over theannexation of Ukrainian region of Crimea, Russia is looking for alternativemarkets and wants to capitalise on the growing energy demand in South Asia.
Russia, which controls and manages huge gas reserves in energy-rich Iran,plans to export gas by laying an offshore pipeline through Gwadar Port toPakistan and India, which are seen as alternative markets because Moscowfears it may lose energy consumers in Europe over the Crimea stand-off.
