ISLAMABAD :
The investors lost their confidence when the US Company Unocal announced its withdrawal from the project in August 1998 because of the US bombing of the alleged terrorist bases of Osama bin Laden in Afghanistan. The project was also rendered impracticable due to fighting close to the proposed pipeline route. "Investors would now feel more secure about the project, and would show their interest in it," an official of the Ministry of Petroleum and Natural Resources said. He admitted they could not ensure the investors about the feasibility of the project during the last two years when Unocal backed out of the CentGas consortium formed to carrying out the project. |
The consortium was formed in 1996 to carry gas from Daulatabad in Turkmenistan to Multan in Pakistan with its possible extension to India. The length of the proposed pipeline is estimated to be around 1,800 km. Experts now hope that the fall of Taloqan, capital of Takhar province of Afghanistan and stronghold of Taleban's opposition forces would send positive signals among investors. Experts say that Taleban's latest victory in northern Afghanistan would put Pakistan and Turkmenistan in a strong position to find a replacement for the Unocal and make the project feasible. Pakistan is also working on an alternative plan of importing gas from the Gulf to overcome its shortage. The government is considering import of gas from the North Dome field in Qatar and South Pars field in Iran. The experts believe that the two projects are more practicable. The government has already signed a Memorandum of Understanding (MOU) with UAE Offsets Group (UOG) last year for the supply and transmission of 1.5 billion cubic feet (bcf) of natural gas from Gulf to Pakistan daily. UOG is already planning to supply gas from Qatar's North field reserves to UAE and Oman in a pipeline, which is expected to be extended to Pakistan. Pakistan's gas demand is increasing every next year. According to official estimates the current gas shortage stands at 2.6 bcf a year. The estimates have predicted that the gas shortage would increase to 4 bcf by 2006. The experts in gas sector put the possible gas shortfall at 1.5 bcf a year by 2005. The demand for gas is increasing due to government policy of replacing oil with natural gas and kerosene with liquefied petroleum gas in the domestic sector. Officials say it is the best option to save the foreign exchange reserves from spending a big chunk of it on petroleum import. |