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January 20, 2003 Monday Ziqa'ad 16, 1423

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Gas project likely to feature in talks: Musharraf’s Moscow visit



By Khaleeq Kiani


ISLAMABAD, Jan 19: Pakistan and Russia are expected to discuss 2,670km-long Iran-Pakistan gas pipeline to India besides bilateral cooperation in oil and gas sector when President Gen Pervez Musharraf visits Moscow early next month.

Official sources told Dawn on Sunday the foreign office has asked the ministry of petroleum and natural resources to prepare a “brief for the president” on oil and gas cooperation and $3.2billion trans-Pakistan gas pipeline.

Iran, the sources said, had already been pursuing a proposal for a tripartite agreement on the gas pipeline from Iran to Pakistan and onward to India, serving both the markets.

The proposal envisages laying of 2,670km on-land pipeline with a capacity of 3,260 mmcfd (million cubic feet per day) and estimated cost of $3.2 billion. The project includes 1,000 mmcfd of gas for Pakistan.

The proposed gas pipeline would run 1,115km in Iran, 705km in Pakistan and 850km in India although a lot of skepticism prevailed around the project due to hostile relationship between India and Pakistan, they said.

Pakistan had signed a memorandum of understanding (MoU) with Russian energy firm Gazprom in November last year to carry out, without surveying and mapping, the pre-feasibility of trans-Pakistan gas pipeline from Iran to India and to enhance oil and gas cooperation.

However, relevant quarters in Pakistan advised the government to review the situation when Russian President Vladimir Putin issued an adverse statement about Pakistan’s nuclear programme during his visit to New Delhi in December last.

Under the MoU, Pakistan allowed Gazprom to carry out pre-feasibility study, without surveying and mapping, of the proposed gas pipeline which has to pass through Pakistan’s naval territory.

Gazprom agreed under the MoU to enhance cooperation in all fields of oil and gas, including conversion of diesel vehicles to compressed natural gas and privatisation process in Pakistan. No progress or follow up could take place under the MoU since then, the sources added.

The Russian firm is required under the MoU to prepare proposals on cooperation for consideration of the Pakistan government to be followed up by relevant agreements for cooperation.

Pakistan would facilitate the efforts of the Russian firm and provide information as may be available in the areas of interest regarding oil and gas sector under a confidentiality agreement.

Both parties would also enhance mutual cooperation by exchange of visits to each others’ countries for mutual benefit. All disputes concerning the interpretation and application of the MoU would be settled through mutual consultations.

The MoU has a validity period of one year or till conclusion of relevant agreement whichever comes first.



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