The two nuclear armed neighbours India and Pakistan are holding talks over supply of natural gas to energy deficit Pakistan.

Islamabad, July 25/Nationalturk -In order to overcome energy crisis, Pakistan government is in talks with its arch rival and nuclear foe India for exporting natural gas to the country through a gas pipeline.

“India and Pakistan are holding talks for supply of natural gas to Pakistan to help the country overcome energy crisis. India plans to lay a 110 kms pipeline from its Punjab province to Pakistan for supply of gas to its arch rival,” highly placed sources said.

India’s State run GAIL chairman and Managing Director B C Tripathi told media persons that India has proposed to lay a 110-km pipeline from Jalandhar to Wagah border via Amritsar to supply natural gas to Pakistan.

Gail is India’s largest gas transmission and marketing company.

Tripathi said gas in its liquid form (liquefied natural gas or LNG) will be imported at ports in Indian State of Gujarat and moved through GAIL’s existing pipeline network till Jalandhar. “It will then be supplied through the proposed line to Pakistan”.

‘Gas pipeline will take one-and-half years to complete’

Sources said once an agreement is finalised, the project will take at least one-and-half years to complete.

The official said Islamabad has shown keen interest in taking natural gas from India to meet its energy demand. “The export is techno-commercially feasible for India as well”.

He said initially, Pakistan wants to take 1-1.5 million tonnes of LNG. “India is willing to export 400 million cubic feet of gas per day to Pakistan but the matter hinges on finalising a tariff. The negotiations on pricing and other commercial things are going on”.

LNG imports into India are currently in the range of $13-14 per million British thermal unit and after including customs or import duty, pipeline transportation charges and local taxes, the delivered price will be close to $21.

‘LNG would be gasified by Indian side’

Pakistan does not have an LNG import facility at present.

Sources said LNG would be gasified by the Indian side and pumped into the pipeline for Pakistan.

Officials in Pakistan confirmed that talks were going on with India over purchasing gas from the country. “The gas would be imported from India only if the tariff is finalised on the lower side”.

Pakistan’s demand for gas stands at 8 billion cubic feet while the current production is 4 billion cubic feet.

Pakistan also intends to import 750 mmcfd of gas through Iran-Pakistan gas pipeline to generate 4,000 MWs of electricity in the country to overcome power crisis.

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Faiz Ahmad / NationalTurk India News

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