Home Business Gazprom enters Pakistan’s energy market with a $ 10 billion deal

Gazprom enters Pakistan’s energy market with a $ 10 billion deal

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News Desk |

A Gazprom delegation headed by Vitaly Markelov, Deputy Chairman of the Gazprom Management Committee, paid a working visit to the Islamic Republic of Pakistan today. As part of the visit, Vitaly Markelov and Mobin Saulat, Managing Director of Inter State Gas Systems (Private) Ltd., signed a Memorandum of Understanding for constructing an offshore gas pipeline.

The document, which serves as a follow-up to the Memorandum inked by the Ministry of Energy of the Russian Federation and the Ministry of Energy of the Islamic Republic of Pakistan in September 2018, provides for a joint feasibility study regarding gas supplies from the Middle East to South Asian countries.

The Company is successfully expanding its LNG sales within the existing Sakhalin II project and implementing new initiatives in order to substantially strengthen its position in the fast-growing global LNG market.

Initially, the feasibility study of this $10 billion offshore gas pipeline project would be carried out by Gazprom at its own expense. The pipeline would follow an integrated approach, including other ancillary projects such as Under Ground Gas storage, desalination, and other power projects.

Gazprom is a global energy company focused on geological exploration, production, transportation, storage, processing and sales of gas, gas condensate and oil, sales of gas as a vehicle fuel, as well as generation and marketing of heat and electric power.

Gazprom holds the world’s largest natural gas reserves. The Company’s share in the global and Russian gas reserves amounts to 17 and 72 percent respectively. Gazprom accounts for 12 and 68 percent of the global and national gas output correspondingly. At present, the Company is actively implementing large-scale gas development projects in the Yamal Peninsula, the Arctic shelf, Eastern Siberia and the Russian Far East, as well as a number of hydrocarbon exploration and production projects abroad.

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Gazprom is Russia’s largest producer and exporter of liquefied natural gas (LNG). The Company is successfully expanding its LNG sales within the existing Sakhalin II project and implementing new initiatives in order to substantially strengthen its position in the fast-growing global LNG market. Inter State Gas Systems (Private) Ltd., a subsidiary of Government Holdings Private Limited (GHPL), operates under the Petroleum Division of Pakistan’s Ministry of Energy and implements strategic infrastructure projects in the gas sector.

Pakistan will import some 500 million to one billion cubic feet of gas per day (MMCFD) from these Russian sources, which would be transported via sea link, the agreement stipulates. The pipeline construction is expected to be completed in three to four years. Russia holds huge gas deposits in Bahrain, Qatar, and other Middle Eastern countries and had offered Pakistan and India gas exports by laying the offshore pipeline that would be passing through Gwadar.

The Russian side thanked their Pakistani counterparts for the facilitation being extended in preparing necessary groundwork for the project and renewed their commitment to deepening energy cooperation between both sectors.

The Russian delegation headed by Vitaly A. Markelov, Deputy Chairman of the Management committee, PJSC, ‘Gazprom’ International, also visited the Petroleum Division and held a meeting with Petroleum Minister Ghulam Sarwar Khan and other government officials.

According to a statement, federal Petroleum Minister Ghulam Sarwar Khan appreciated the expanding trajectory of bilateral relations between Russia and Pakistan. Khan welcomed Gazprom’s interest in offshore gas pipeline project and termed it a manifestation of multifaceted cooperation between both countries.

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The Russian side thanked their Pakistani counterparts for the facilitation being extended in preparing necessary groundwork for the project and renewed their commitment to deepening energy cooperation between both sectors. The Russian side invited the federal minister to visit Russia at mutually convenient dates, which the minister gladly accepted.


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