M Ejaz Chaudhry, Pakistan’s secretary for petroleum and natural resources, in an interview with Ajay Modi, talks about the possibilities between the two nations in the energy space. Edited excerpts:
On the energy front, what developments can be expected between India and Pakistan?
While both are energy-deficient, Pakistan has more serious problems. Both need to look for energy, and both should work together and in collaboration to solve the energy crisis.
The countries have shown resolve and willingness in the form of the TAPI gas pipeline project. We are in talks for the import of petroleum products. LNG transit through India can also be considered.
What is the deficit Pakistan faces in petroleum products?
We are facing a huge shortage. Our total gas production is 4 billion cubic feet a day, while our need is more than seven billion cubic feet a day. The shortage is being mitigated through load management. We need at least two billion cubic feet of gas as soon as possible. Pakistan has been a gas-rich country. We have enjoyed our resources very much, but it has been overcommitted.
Now, the deficit is increasing. We seriously need to import and produce more gas. Pakistan imports 83 per cent of its crude oil requirements, almost similar to India. However, India has a much better refining industry. We are trying to improve our refining system.
What petroleum products would Pakistan look to import from India? Has it removed petroleum products from the negative list?
We wish to import petrol and diesel. Diesel was already on the positive list and Pakistan has recently accorded the most-favoured nation status to India. The process for removing some items and putting these on the positive list is underway.
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How can India help address the gas shortage?
India has a large pipeline network and we look to bring LNG through India. We are thinking of connectivity from Indian pipelines to the upper part of Pakistan. This is just a proposal now. We look to purchase LNG in floating terminals and access the Indian pipeline transit route to bring it to Pakistan.
The TAPI gas pipeline project has not progressed, owing to issues like rates and security. What is the status of this?
The TAPI project is under progress. Negotiations on pricing have been completed by the respective countries. The finalisation of transit rates would take place soon. This would be followed by the signing of the gas sale and purchase agreements in about two months.
Other formalities would take seven-eight months and the construction must start in a year and half. It is a 17,000-km pipeline, and would take lot of time. It has been agreed that we will charge the same transit fee from India as Afghanistan.