Islamabad, Pakistan, December 10, 2010 (ANI): Geo-Politik reported that Pakistan is trying to form a new alliance in order to provide uninterrupted energy supply for its citizens and businesses. Pakistan is looking to diversify its energy sources in order to address the energy crisis. According to Geo-Politik, a delegation of Pakistani ministers including the Minister of State (Petroleum Division), traveled to Kazakhstan between November 8-11. The two sides discussed the possibility of connecting Kazakhstan’s existing natural gas pipeline network with the proposed TAPI (Turkmenistan-Afghanistan-Pakistan-India) pipeline network to facilitate gas supplies from Russia through Kazakhstan and Kazakh investment in Pakistan in pipeline and refinery projects.Projects like TAPI could only start if India becomes part of the project. According to the report, Kazakhstan has not yet agreed to cooperate with Pakistan’s proposal. Kazakhstan rejected Pakistan’s proposal and stated that they don’t produce enough gas to be able join the TAPI Project.
According to the Geo-Politik report, the Kazakh side stated that it is continuing work on its own pipeline projects and will not be able give funds for Pakistan’s gas network. On the sidelines at the 6th CICA summit, Pakistan demanded that Kazakhstan be included in the TAPI project. Kazakhstan, however, refused to accept Pakistan’s proposal. It also stressed that it doesn’t have enough gas to supply. Pakistan has been in an energy crisis and is experiencing a decline in remittances. Exports from Pakistan have dropped by USD 3 billion to USD 2 billion. According to Geo-Politik, the Russia-Ukraine conflict has also impacted the energy market. Pakistan wants to finish the Trans-Afghanistan Pipeline project (TAPI). The work is slow because of differences between the promoters as well as financial shortages. Pakistan imports LNG at an average cost of USD 12 per Metric Million British Thermal Units. According to the news report, Pakistan’s average price for LNG imports has been USD 12 per Metric Million British Thermal Units (MMBtu). If it begins importing gas from the TAPI pipeline, it will cost around USD 6-7 per million. The TAPI pipeline will carry 33 billion cubic metres (bcm), of natural gas annually along a 1,800-km route from Galkynysh. Pakistan’s natural gas resources are rapidly diminishing and Islamabad needs two pipelines to transport it. The TAPI pipeline will carry 33 billion cubic meters (bcm) of natural gas each year along a route that runs 1,800 km from Galkynysh. Kazakhstan is the Commonwealth of Independent States’ (CIS) member with the largest liquid hydrocarbon reserves after Russia. (ANI)