Russia offers to supply gas via undersea link to Pakistan

The Pakistan government's long-pending dream of importing natural gas through a pipeline has taken yet another turn with the Russians offering an alternative even as the India-Oman project has been formally junked. The choices now under consideration are to import gas either from Turkmenistan through the Afghanistan-Pakistan route or buy Russian gas through a pipeline that will run through Iran and the Arabian Sea.
While the pipeline from Turkmenistan is estimated to cost $ 2.1 bn, the proposal from Russia is estimated to cost $ 2.3 bn. The capacity envisaged is around 15 bn cm of gas per annum for both projects. Senior government officials said the Russians have offered the service of Gazprom -- a Russian firm which has set up a pipeline to Turkey through the Black Sea.

While building of an undersea pipeline is considered to be expensive and technically difficult, representatives of the Russian government have said Gazprom is technically capable of handling the project. While the investmentwould be marginally higher as compared to a pipeline running over land, the capacity would also be higher.
Also weighing on the mind of the decision-makers in the government is the reliability factor of a pipeline running through Afghanistan and Pakistan. The current political climate is especially unsuitable for the project as India cannot be sure of uninterrupted supply.

Of the total length of the 1,500 km pipeline from Dauletabad and Donmez gas fields in Turkmenistan to India, nearly 700 km runs through Afghanistan. Considering the volatile situation in Afghanistan, this aspect is considered a major risk, especially since the Karzai government is not in full control. The recent attempt to assassinate the Afghan President has been cited as a reason for caution on the Turkmenistan project.
The situation in Pakistan is also estimated to be equally fluid since Jihadi elements are posing a threat to the Pakistan government. The attacks on Christians and foreigners indicate the kind of hatred Islamic radicals hold for anybody opposed to Jihad. According to information available with the government, a gas pipeline was damaged at Belugistan by terrorists and such attacks cannot be ruled out in future too.

On the other hand, Turkmenistan, Afghanistan and Pakistan have set up a steering committee to facilitate the project. A final decision on the pipeline import project would be taken after evaluating these pros and cons, the sources said.
Petroleum ministry officials are however, not so sure about the economic feasibility of the proposed venture. Although, Gazprom is a company with proven capabilities and technical expertise, officials feel that gas imported directly from Iran is expected to be the cheapest gas India can source. The other option which has not yet been politically accepted is gas imports from Bangladesh.