ISLAMABAD – Russian company Gazprom is set to initiate the feasibilitystudy in the first quarter of 2020 for laying down undersea pipelinestarting from Gulf to Pakistan, India and Bangladesh initially that willultimately end to China after touching Myanmar and Thailand, a seniorofficial of the Petroleum Division privy to the development said.
The pipeline will pass through shallow waters of Pakistan, India andBangladesh and every country will get the gas from the pipeline as perrequirements.The total cost of the undersea pipeline will hover around $20bn-$25bn whenit will be extended to China at last.
The most important aspect of the project, the official said, is that everycountry will provide the transit fee to Pakistan, which will run intobillions of dollars when the said pipeline will ultimately have access toChina.
Pakistan will be getting transit fee from India, Bangladesh, Myanmar,Thailand and China. Pakistan’s Navy will provide services with regard tomonitoring the pipeline and its security.
Pakistan and India have already signed MoUs and agreements with Russiaseparately for the project under which both countries would get gas fromthe undersea pipeline through the spur pipelines.
However, the three countries, at the outset Pakistan, India and Bangladesh,will benefit from the billions of dollars Russian investment as buyercountries.According to the official, the undersea pipeline would be laid down with anestimated investment of $10 for the regional three countries and Pakistanwill get gas from the undersea pipeline up to 1bcfd.
More importantly Russia-Pakistan economic corridor will also be set up andRussia will also invest in fibre optic link, roads and power projects asancillary facilities.
Pakistan will take the gas up to 1bcf per day when the said pipeline willcome on stream with massive rollover impact on economy.
Russia is already engaged with Pakistan on North South Gas Pipeline, whichwill cost $2bn-2.5bn. However, Gazprom has also shown interest in buildinggas storages in Pakistan with investment of $400mn-$500mn.
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Russia is also interested in investing in exploration and productionactivities in Pakistan and to this effect Gazprom is currently engaged withthe top management of OGDCL.
However, under the agreement, another top Petroleum Division official saidGazprom Company from gas deposits in Iran and in other Middle Eastcountries owned by Russia will ensure gas sourcing in the pipeline for thesaid buyer countries. The buyer countries under separate agreements withthe said Russian company will have gas intakes from the said pipeline.
The official said Pakistan will share its credible data with Russiancompany about the demand of gas with future projections in next one decadekeeping in view existing pricing structure, and regulatory and taxationregimes. The data for demand would be worked out keeping in view therenewable power policy and future LNG terminal being installed by privatecompanies.
The same data India will provide to Russian company too, Gulf Times hasreported.
After having the required data from Pakistan and India, the Russian companywill ink commercial agreements with buyer countries.
Based on data from both the countries, Gazprom will start the feasibilityin the first three months of 2020 and the whole process staring fromsharing the data to completion of feasibility report will be finished inone year time and if the project is found feasible, the pipeline will belaid down undersea in 3-4 years.
To a question, the official said that Pakistan had the option to build spurpipeline to connect the undersea pipeline and the spur pipeline can also beconnected to S-N pipeline.
