Wasted potential

Published October 22, 2013

WHILE last month’s powerful earthquake in Balochistan resulted in an economic and human disaster in the province, it also created a new island off the coast of Gwadar in the Arabian Sea.

The new island generated great public excitement and attracted the interest of geo-scientists all over the world. For some, it also enhanced the strategic importance of Gwadar.

The methane, a major component of natural gas and seen as an alternative source of energy, rising from the surface of the new island offered hope of the country’s energy woes being overcome.

But, like the methane hydrate deposits, the province’s other enormous energy resources are still untapped due to the dominance of the national security paradigm in economic planning.

Strategically located Gwadar has the potential to emerge as a future port of energy, a petro-chemical hub and a terminus of the proposed energy pipelines carrying crude from Iran, Turkmenistan or Qatar. And now with huge methane hydrate deposits, it is considered a ‘hotbed’ of alternative energy reserves.

The appearance of the 20-metre high, 100m long and 40m wide island is, however, not a first. In 1945, an island emerged in the same area after an earthquake. Similarly, in 1999 and in 2011, new islands emerged, though there was no earthquake, but collapsed after a certain period of time.

The Balochistan coast is an active seismic region due to the convergence of three tectonic plates. The creation of a new island points to the existence of frozen methane in the form of gas hydrates hundreds of metres below the sea floor.

Extraction of gas from offshore methane hydrate deposits along the Balochistan coast, which is believed to have extensive reserves of frozen methane, may avert the growing energy crisis in the country. Methane is formed under certain pressure and conditions.

Depressurisation and hot water circulation methods are normally used to extract methane gas from hydrate reserves. Many countries in the world, including the US, Canada, Japan and China, are looking at exploiting hydrate deposits as an alternative source of energy.

Have the energy authorities ever worked out a strategy to explore methane hydrate deposits off the coast of Balochistan?

For the first time, in March this year, the Japan Oil, Gas and Metals National Corp, a Japanese energy explorer, extracted gas from offshore methane hydrate deposits.

In the past one decade, Japan has invested several hundred million dollars in developing technology to tap methane hydrate reserves off its coast. These reserves could mean 11 years of gas consumption. Pakistan could seek Japan’s help in exploiting its offshore methane hydrate deposits.

The province has a 770-kilometre long coastal belt along the Arabian Sea. This belt links the two districts of Lasbela and Gwadar. The Balochistan coastline comprises 70pc of the country’s entire coastal belt.

Gwadar is strategically located close to the Strait of Hormuz, an important route for global oil supplies. The province’s geo-strategic location and coastal resources could be enough to change the destiny of Balochistan and the country.

According to one estimate, out of the country’s estimated 25.1 trillion cubic feet of proven gas reserves, 19tcf are located in Balochistan.

The province has the potential to emerge as the country’s new economic frontier. To all economic planners, the province presents a veritable economic bonanza for its natural endowments and geo-strategic location.

Good economic planning and strategy can positively exploit the province’s geographical position and convert Balochistan into a land of opportunity for international trade and business. Merely putting emphasis on the strategic importance of the province cannot lure foreign investors.

Unfortunately, Balochistan has been viewed by decision-makers at the centre as a base to be used purely for political, strategic purposes. Whatever development the province has seen has been not for economic but strategic reasons.

In fact, many development projects and schemes were halted or made unsuccessful. The district Chagai, known as the museum of minerals, was converted into a nuclear test laboratory. Unfortunately, the government has preferred the development of the province to be under the shadow of military garrisons.

It was during the Indo-Pak wars of 1965 and 1971 that the country’s planners thought that the development of an additional port on the Balochistan coast (away from Karachi) was important from the defence point of view.

In 2002, Gen Pervez Musharraf launched the Gwadar port project but also announced the setting up of a military cantonment there. The Baloch nationalist parties contend that the rulers can spend billions of rupees for establishing military cantonments but have nothing to give for the supply of drinking water to the people of the province.

The strategic considerations may turn Gwadar port, which has the potential to emerge as the principal port in the region, into a naval base.

Regrettably, Balochistan with its world-class gold deposits and tremendous energy resources presents a picture from the mediaeval age. Donkey-driven fans are still used in the blazing summer heat in the Jaffarabad and Dera Murad Jamali areas.

People still travel on camels in Jhal Magsi district for lack of communication infrastructure such as roads. In parts of the province they burn wood and coal to warm themselves in the colder season.

Meanwhile, Balochistan continues to reel from the effects of a separatist insurgency, sectarian terrorism and ethnic violence.

Only a development strategy that is compatible with the geography, demography, political economy, socioeconomic conditions, local needs and rapidly changing regional politics can help Pakistan exploit Balochistan’s geo-strategic location and natural endowments.

The development process must bring about positive change in the province. If people feel socially alienated, economically frustrated and politically discriminated against, then infrastructure development alone will not help the goals of economic progress and gainful exploitation of the province’s huge natural resources.

The writer is the author of The Economic Development of Balochistan.

sfazlehaider05@yahoo.com

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