ISLAMABAD: Pakistan has agreed upon signing a multi-billion-dollar offshore gas pipeline deal with Russia in coming few weeks.
This happened on the sidelines of Prime Minister Shahid Khaqan’s Abbasi recent visit to Russia and a memorandum of understanding (MoU) was supposed to be signed in this regard, which unfortunately didn’t materialize, reported Express Tribune.
Russia which oversees major gas reserves in energy-rich Iran, plans to build an off-shore gas pipeline for exporting gas to Pakistan and India.
This is an attempt by Russia at diversifying its revenue stream because it provides gas to the European Union and fears losing access to it because of its deteriorating relations with US and its annexation of Crimea from Ukraine a few years ago.
After the MoU gets signed, a feasibility study will be conducted to know its viability and Russia is willing to provide financing for conducting it, said an official. He added, the US was aware that Russia owned major gas reserves in Iran and opposed the Iran-Pakistan (IP) gas pipeline project because of this reason.
IP gas pipeline project will give Russia a chance to build a parallel gas pipeline for gas export to Pakistan and India. The official disclosed that India had also expressed interest in procuring gas via this offshore pipeline from Iran via Gwadar.
Although India has expressed interest in preliminary discussions regarding this offshore pipeline project, but there is a high probability the US will pile up pressure on Delhi to pull out away from its rivals.
