In light of the Ukraine conflict, the government promotes Gwadar as a gas transportation hub

Web DeskJune 22, 20235027 min

ISLAMABAD: To safeguard their energy security in a world that has changed as a result of the Russia-Ukraine war, the government is urging Europe and China to route their gas supplies from Central Asian countries through Gwadar.

The Central Asian nations of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan, according to Minister of State for Petroleum Musadik Malik, are the world’s energy capitals. But because these nations are landlocked, he claimed, their resources were imprisoned and unable to be transferred to the rest of the world.

In order to promote Pakistan as a natural trading hub for natural gas and liquefied natural gas (LNG), more to the economic advantage of those countries as well as benefits flowing to Pakistan as a smaller partner, the minister claimed that the government had engaged with Central Asia, European countries, Turkiye, China, and even the United States. We have discussed this with our friends and friendly nations, he continued.

In light of the Ukraine conflict, the government promotes Gwadar as a gas transportation hub.

He claimed that Islamabad has recently spoken with the leaders of Azerbaijan and Turkmenistan about these options as well.

Turkmenistan has been seeking a multibillion-dollar gas pipeline with little success due to obstacles with international financing and the Afghan crisis. He claimed that Pakistan has spoken about this with the energy task force of the European Commission.Since Turkmenistan lacks a port, it is unable to sell its gas to the rest of the world, but Mr Malik claimed that a pipeline could transport it to Pakistan.

He claimed that Europeans could build their own LNG processing facilities in Pakistan, especially at the Gwadar port, from which they could ship gas back home. He suggested that this might be another choice for them. Additionally, he continued, China may build LNG facilities to meet its needs.He claimed that Azerbaijan’s gas and other Caspian Sea resources could be sent to Turkiye, where a pipeline network is already in place to carry gas anywhere in the world, via Georgia.

“So, this can become a natural arch of friendly countries, including Azerbaijan, Pakistan, and Turkiye, and there could be a parallel movement of natural gas through pipelines on the one hand, and LNG through ships on the other,” he said. According to Mr Malik, this agreement may bring about a new era in energy security for Europe and other countries, and Pakistan may also develop into a hub for energy transportation. He continued, “We can become a small shareholder in pipelines and terminals with land, port, and pipeline routes.”

“Since Central Asia is the world’s energy capital, we want to be their trading partner. We have suggested using a pipeline to provide gas to Pakistan. Turkmenistan has enormous gas reserves that are almost as large as Qatar’s, he claimed. We invite everyone to set up an LNG facility in Gwadar, notably China and Europe, so they can invest in this industry and export to other nations.

The Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline’s financing was a major obstacle, according to him. He added that once European nations discovered a way to secure their energy through Pakistan, international multilateral agencies could also step forward with a debt portion of the $10 billion pipeline.

In addition to the current agreements, the minister stated that Pakistan would need to sign more short- and long-term LNG agreements over the course of the next two to three years as prices decline due to what is anticipated to be a glut-like situation on the global LNG market once the Ukraine crisis is resolved.

According to him, Qatar’s production would increase by about a third of what it was currently producing. Additionally, Henry Hub deliveries from North America had already reached Europe, and their flow appeared to be about to expand to Asia as several nearby players had begun investing in LNG facilities and transportation trains. He added that supplies from Australia were also on the way.

In the meantime, the United Arab Emirates is constructing brand-new liquefaction trains with a number of parts to refine, process, and turn natural gas into LNG. To fulfil the rising demand for gas around the world, the energy company Abu Dhabi National Oil Company has announced intentions to expand its LNG production capacity. According to Mr. Malik, all of them might offer Pakistan excellent conditions and pricing to secure in two to three years.

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