Russian firm geared up to start feasibility study for $10 billon offshore gas pipeline

October 04, 2018: The Gazprom International is all set to start feasibility study for laying $10 billion offshore gas pipeline.

During the meeting held between a delegation of Ministry of Energy Petroleum Division and Russian energy experts in Russia, Managing Director Inter State Gas Systems (Pvt.) Limited Mobin Saulat said that both the sides identified potential future areas of cooperation, and agreed to accelerate cooperation in the area of Energy with a special emphasis on oil and gas besides starting the feasibility study for the $10 billion gas pipeline.

He said that the feasibility study, which would commence within 12 months, would include preliminary, technical, financial parameters of the project including gas pipeline route, gas supply volumes and information.

Through the pipeline, the firm will supply the commodity to Pakistan from its Middle East fields which would have great potential of regional connectivity, he said.        

The project envisages transporting of gas molecules from Gazprom’s sources in the Middle East onwards to Pakistan with a possibility in extending it further to South Asian countries.

The pipeline would follow an integrated approach including other ancillary projects such as Under Ground Gas storage, desalination and other power projects.

Relations between cold war foes, Russia and Pakistan have witnessed an upward trajectory in recent years in all spheres.

Both the countries have drawn closer to each other and relations have been marked with an increasing proximity and convergence on major issues.

Gazprom is making an entry in Pakistan at the time when a number of projects under China-Pakistan Economic Corridor (CPEC) are in full swing and Pakistan has emerged as a major point in the Belt and Road Initiative.

Saulat said both the parties recognize that this will lead to mutually beneficial opportunities for implementation of joint business arising from natural gas transportation.

The agreement would lead to establishment of a Joint Working Group which would review the project quarterly on an alternate basis in Pakistan and Russia, he added.

APP