Pakistan is making efforts to find a new energy alliance to ensure an uninterrupted energy supply to households and industries, Geo-Politik reported. Pakistan is trying to diversify its energy sources for tackling the energy crisis.
A delegation of Pakistani ministers, including the Minister of State (Petroleum Division) Musadik Masood Malik travelled to Kazakhstan from November 8-11.
During the visit, Pakistani ministers held a meeting with Kazakh Minister for Energy Akchulakov Bilat Uralovich. In order to facilitate gas supplies from Russia through Kazakhstan and Kazakh investment in pipeline and refinery projects in Pakistan, the two sides discussed the possibility of connecting Kazakhstan’s existing natural gas pipeline network with the proposed TAPI (Turkmenistan-Afghanistan-Pakistan-India) pipeline network, the report said.
According to the report, Projects like TAPI could only start if India becomes part of the project. However, Kazakhstan has not agreed to cooperate with Pakistan’s proposals. In rejecting Pakistan’s proposal, Kazakhstan said that they do not produce sufficient gas to be able to join the TAPI project.
Furthermore, the Kazakh side said that work continues in its own domestic pipeline projects and it will not be able to give funds for the Pakistan gas network, as per the Geo-Politik report. In 2013, Pakistan called for the inclusion of Kazakhstan in the TAPI project on the sidelines of the 6th CICA summit. However, Kazakhstan had not agreed to Pakistan’s proposal and stressed that it does not have adequate gas to supply.
An energy crisis, excessive inflation, and a decline in remittances have all been problems for Pakistan. Exports from Pakistan decreased from USD 3 billion to USD 2.2 billion. Political and economic factors in the Russia-Ukraine conflict have further impacted the energy market.
Pakistan wants to complete the Trans-Afghanistan Pipeline (TAPI) gas pipeline project. However, the work is being conducted very slowly due to differences among the promoters and financial shortages. Pakistan has been importing LNG at an average price of USD 12 per Metric Million British Thermal Units (MMBtu). Pakistan has 5 % shares in TAPI and the price will reach around USD 6-7 per MMBtu if it starts importing gas from the TAPI pipeline.
According to the report, Pakistan’s present needs for gas could be met by Kazakhstan and the TAPI pipeline project, and Islamabad wanted Kazakhstan to accept its plan to address the issue of energy storage. Among the members of the Commonwealth of Independent States, Kazakhstan possesses the second-largest liquid hydrocarbon fields after Russia (CIS).
(With Inputs from ANI)
