Pages

20 July 2014

Pipeline to Pakistan may revive stalled mega projects


Published: July 19, 2014 2

Atul AnejaMahim Pratap Singh


India’s decision to pipe natural gas and other petroleum products to Pakistan is being seen as a first step that could lead to the revival of two stalled mega undertakings involving Islamabad — the Iran-Pakistan-India (IPI) pipeline and the Turkmenistan-Afghanistan-Pakistan-India (TAPI) project.

“We are attempting a pilot project with Pakistan. If it succeeds, and there is a genuine demonstration of goodwill from Pakistan on all fronts, including security, it could lead to the reconsideration of stalled mega projects such as IPI and the TAPI pipeline,” highly placed sources said.

The sources observed that a new gas pipeline and a products pipeline to Pakistan from India was the brainchild of the Manmohan Singh government. The Modi administration has been willing to carry forward the proposal.

Instability in Pakistan’s Baluchistan, through which the proposed IPI would pass, coupled with the policy of the United States so far to seek Iran’s political and economic isolation, have impeded the project. But analysts say that the IPI could revive, should a breakthrough be achieved in the ongoing nuclear talks between Iran and the six global powers — U.S., Russia, China, France, Britain and Germany. “There is already a softening of stance towards Iran among international oil majors. A political deal, if it materialises, would cement Tehran’s possible reintegration in the global economy and raise its regional standing in West Asia,” the sources said.

Pakistan has responded positively to the Indian proposal for gas and product pipelines to the country.

“I can assure you both sides are working overtime to hasten the process,” Pakistan High Commissioner Abdul Basit said in a conversation with The Hindu on Friday. He stressed that Pakistan Prime Minister Nawaz Sharif — a guest during Prime Minister Narendra Modi’s inaugural — had stated his intention to import 500 megawatts of power from India.Optimistic

The Pakistani diplomat was optimistic that one or two projects could materialise quickly. “We are working towards it… [the experts are] hammering out technical details… some private players are also interested in exporting energy to Pakistan,” he observed.

Official sources said the gas would be first imported to the LNG terminal at Dahej on the south-west coast of Gujarat.

From there, it will be transported along the existing pipeline network to Jalandhar, which would become the transit hub for Pakistan, connected by a new 103-km pipeline, which Gas Authority of India Limited (GAIL) plans to build.

Besides, the new products pipeline proposes to transport diesel and kerosene from the Bhatinda refinery in Punjab to Lahore.
 

No comments:

Post a Comment