Pak asks to reconsider gas price India is offering under Indo-Pak gas trade plan
While Pakistan is keen to import gas from India through a 110-Km pipeline, it has asked India to reconsider the high price it is offering. On the other hand, India has sought sovereign payment guarantees from Pakistan before signing an export contract to supply LNG.
Indo-Pak gas pipeline project:
Pakistan with a total electricity generation capacity of 20,000 MW, is going through a serious energy and power shortage and is interested in importing gas from India to fulfill its rising energy requirements. With Iran-Pakistan gas pipeline project hanging in balance due to pressure from the U.S., the deal with India becomes quite significant. India has also conveyed its willingness to export gas to Pakistan. As per the proposed plan, GAIL India will supply natural gas through the cross border pipeline passing through Wagah-Attari border. Gas in its liquid form will be imported in Maharashtra or Gujarat and then moved through GAIL’s existing pipeline network till Jalandhar. The pipeline would start from Jalandhar in Punjab leading through Attari. The pipeline will be 110-km long and India intends to supply 400 million cubic feet of gas per day to Pakistan. Islamabad plans to take 1-1.5 million tonnes of LNG.
The pipeline project is also viewed as a feasibility study for the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline through which both Pakistan and India propose to import natural gas from the Turkmenistan.
Categories: Business & Economy Current Affairs 2017