Gazprom's involvement in IP gas line project likely: team may be sent to Russia

The government is likely to send a high-level delegation to Russia for exploring the possibility of Gazprom's involvement in the construction of Iran-Pakistan gas pipeline project, it is reliably learnt. According to sources in the Ministry of Petroleum and Natural Resources, Russian oil and gas giant Gazprom has indicated its interest in constructing IP as well as TAPI gas line projects.
Gazprom submitted Expression of Interest in response to Inter Sate Gas Company's invitation in August 2011, the official added. Pakistan will import 750 million cubic feet of gas daily for 25 years from Iran according to the terms of the agreement. "The government has many financial options to complete the IP project and we have sent a final letter to Industrial and Commercial Bank of China (ICBC) requesting a final answer about its willingness to remain in the project or not," the official added.
IP pipeline is planned to be laid along the Balochistan coastline up to Nawabshah, Sindh from where it will be linked to the national gas transmission network. Pakistan as per the project documents committed to obtain 750 Million Cubic Feet per Day (mmcfd) from the IP gas pipeline and 1.25 Billion Cubic Feet per Day (BCFD) from TAPI project.
Pakistan and Russian authorities have held initial level talks on Gazprom's involvement in the construction of gas pipeline, sources revealed. At present Pakistan is facing a gas shortfall of 2 BCFD with estimated domestic gas production at 4.2 BCFD against requirements of 6.2 BCFD.
According to official estimates, gas shortfalls are estimated to reach 2.5 BCFD in 2014-15, 3 BCFD in 2015-16 and 3.5 BCFD in 2016-17. The gap is estimated to peak at 5 BCFD by 2020-21, unless major discoveries/field developments and/or imports are made in coming years.