Gazprom to mull upstream projects in Pakistan, LNG supply
MOSCOW. Nov 20 (Interfax) - Gazprom Neft and Gazprom International EP will look at proposals to participate in hydrocarbons exploration and production in Pakistan, according to a protocol from a meeting of the Russian-Pakistan inter-governmental commission, seen by Interfax.
A source with knowledge of the situation told Interfax that Gazprom has already looked at its involvement in upstream projects in Pakistan. "This is more likely to be about gas - there are no interesting oil options there yet," the source said. Gazprom's involvement in developing Pakistan's gas resources might produce a synergy, given that Rostec is building the North-South gas pipeline, and that "oil projects generally already have owners," the source said.
Also, Gazprom Marketing&Trading, on behalf of Gazprom , will explore the possibilities for cooperation with Pakistani energy companies in liquefied gas supplies to Pakistan.
Novatek was discussing the possibility of LNG deliveries from Yamal LNG to a floating regasification terminal in Pakistan with Gunvor, however the Pakistani government that came to power in 2013 cancelled the tender for the construction of the terminal, which the trader had won. The government has now signed an LNG deal to import 1.5 million tonnes per year from Qatar, beginning in December 2015.
According to BP data, Pakistan produced 42 bcm of gas in 2014, all for domestic consumption. The country's gas reserves were 20.4 trillion cubic feet at the end of 2014.
But Pakistan is short on gas for its power stations, and outages are frequent in various regions of the country. Gas plants generate nearly half the country's electricity.
Russia and Pakistan signed an intergovernmental agreement on the North-South gas pipeline from Karachi to Lahore in October. The route of the pipeline is now being surveyed and design and engineering work is underway.
Rostec will build a 1,100-km pipeline with capacity to carry up to 12.4 bcm of gas per year to connect an LNG terminal at the Karachi port in southern Pakistan to the city of Lahore in the northern part of the country.
Construction is underway on an LNG regasification terminal in Karachi. Power plants will be built in the northern part of the country and they will be supplied with gas by the Karachi-Lahore pipeline.