Why does Russia need "Pakistani Stream"


Last news in the Russian economics inevitably made me shudder: Moscow and Islamabad signed an agreement on the construction of the Pakistani Stream gas trunkline. The first thought was the assumption of another adventurous megaproject of Gazprom, which should pass through several openly problematic transit countries. However, unfortunately, or fortunately, our "national treasure" this time is not in business, and everything is a little different than it seems at first glance.


First, you need to decide what the Pakistani gas market is. Due to the rapid economic development of the region, the demand for hydrocarbons is actively growing in Pakistan and neighboring India. The problem for Islamabad is that its own resource base is relatively small. Domestic production is about 41 billion cubic meters per year, and this is not enough for a long time, since a third of the total electricity generation is gas. The country's authorities are trying to solve the problem of the shortage of energy resources in two directions at once.

Pakistan Stream


The easiest way to ensure the import of hydrocarbons was the construction of LNG terminals. The launch of five regasification terminals at once has been announced by 2022. Interestingly, among the participants in this large-scale project, the Gunvor Group company of the notorious St. Petersburg businessman Gennady Timchenko was noticed. However, to deliver "blue fuel" inland, an appropriate infrastructure is required. This is how the idea arose of a main gas pipeline to connect the ports of Karachi and Gwadar on the southern sea coast with the city of Lahore in the north, where power plants and large industrial enterprises are located.

Initially, the project was named North-South, but was later renamed Pakistan Stream Gas Pipeline. Its throughput capacity should be 12,4 billion cubic meters per year, its length - 1100 kilometers, and the cost is estimated at $ 2-2,5 billion. It was supposed to be built by the subsidiary structure of Rostec, the company RT - Global Resources, and the share of the Russian side should be 86%. But then, alas, problems began. Due to the risk of the state corporation falling under US sanctions, it was replaced in the project by a consortium of companies, which included the FSUE Center for Operational Services, the Eurasian Pipeline Consortium, the RF Ministry of Energy, and the Pipe Metallurgical Company (TMK). The total share also decreased from 86% to a blocking stake of 26%. The Russian side is responsible for the design, engineering, construction and selection of Pakistan Stream contractors.

TAPI


The second direction in which Islamabad intends to cover its growing demand for "blue fuel" is the TAPI gas pipeline. It originates from the giant Galkynysh field in Turkmenistan and should pass through Afghanistan, Pakistan and India, ending in the west of this country. Its throughput capacity is 33 billion cubic meters per year. On its territory, New Delhi has already prepared all the necessary infrastructure, Islamabad has carried out preparatory work, Ashgabat has also practically completed the laying and solemnly made a symbolic joint on the border with Afghanistan. But so far, this problem country is the bottleneck in the implementation of this energy project. Neighbors view the construction of TAPI as one of the important economic steps towards restoring peace and prosperity in Afghanistan. We'll see.

Why are these two projects important for Russia?

At first, "Pakistani Stream" in the future should be connected with the main pipeline TAPI. Thus, a unified gas transportation infrastructure will be created in this country, the co-owner of which will be the Russian side. Yes, 26% is significantly less than 86%, but it is definitely better than 0%.

SecondlyMoscow expects that Russian LNG suppliers will be able to gain a foothold in the Pakistani market, which is currently dominated by Oman and Qatar. This was recently announced by Russian Foreign Minister Sergei Lavrov:

Some time ago, there was a mutual interest in the supply of Russian liquefied natural gas through the companies Gazprom, Rosneft and Novatek. Relevant proposals have been made, and we are awaiting a response from our Pakistani partners.

For domestic LNG exporters, this is an attempt to gain a foothold in the promising Pakistani market. Yes, the Middle Eastern monarchies have a number of competitive advantages, due to their smaller logistical leverage, over the Russian factories in Sakhalin and Yamal, but domestic LNG will be able to “pull” its market share.

Thirdly, increased consumption in neighboring Pakistan, India and Bangladesh will eventually pull Qatari and Omani gas from the European market. This will to some extent improve the position of Russian LNG in the Old World.

Thus, the Pakistani Stream will not bring any super profits, but it will be a step forward to consolidate Moscow's economic positions on the territory of former British India.
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  1. 123 Offline 123
    123 (123) 29 May 2021 13: 00
    -1
    What a strange combination. Route TAPI - Turkmenistan - Afghanistan - Pakistan - India. By the way, the Americans render all possible support to him. They can still ... Turkmenistan understands why, the Americans want to straddle the pipeline, increasing their influence on India and Pakistan, and "earn a little" at the same time. Pakistan receives money for transit and, apparently, part of the gas for itself. India gets gas and headaches. The route through Afghanistan (US influence) and Pakistan (Chinese influence) is also stable and reliable.
    What does Russia have to do with it? The Pakistani Stream is being built to transport LNG from the coast to the northern regions of the country. What is the meaning of its association with TAPI? It will not work to pump gas through a pipe in both directions at the same time, you know physics ... So far, only the Sumerians have managed to organize the reverse, they have their own laws of physics.
    I don’t know what will come of it, as long as it’s just a business for Russia, to make a little money. I see no reason to worry about the TAPI supervised by the Americans.
    1. Volkonsky Offline Volkonsky
      Volkonsky (Wolf) 5 June 2021 10: 41
      0
      What does Russia have to do with it? The Pakistani Stream is being built to transport LNG from the coast to the northern regions of the country. What is the meaning of its association with TAPI? It will not work to pump gas through a pipe in both directions at the same time, you know physics ... So far, only the Sumerians have managed to organize the reverse, they have their own laws of physics.

      All European interconnectors, according to the norms of the 3rd energy package, must (and can!) Pump gas in both directions
      1. 123 Offline 123
        123 (123) 5 June 2021 11: 58
        +1
        All European interconnectors, according to the norms of the 3rd energy package, must (and can!) Pump gas in both directions

        Good joke good
        Pakistan became the 28th state of the European Union or signed an energy charter? smile
      2. Volkonsky Offline Volkonsky
        Volkonsky (Wolf) 5 June 2021 13: 44
        0
        It will not work to pump gas through a pipe in both directions at the same time, you know physics ... So far, only the Sumerians have managed to organize the reverse, they have their own laws of physics.

        I'm exclusively about the laws of physics
  2. zzdimk Offline zzdimk
    zzdimk 29 May 2021 13: 03
    0
    Photo credit. Really. Just not in the subject - there is no such geographic zone for such flawed pines to grow.
  3. Marzhecki Offline Marzhecki
    Marzhecki (Sergei) 29 May 2021 14: 06
    -1
    Quote: 123
    What does Russia have to do with it? The Pakistani Stream is being built to transport LNG from the coast to the northern regions of the country. What is the meaning of its association with TAPI? It will not work to pump gas through a pipe in both directions at the same time, you know physics ...

    And regasified Russian gas from the coast cannot flow into the main gas pipeline in Pakistan and go further to India? If, for example, something happens in Afghanistan?
    1. 123 Offline 123
      123 (123) 29 May 2021 15: 14
      +1
      And regasified Russian gas from the coast cannot flow into the main gas pipeline in Pakistan and go further to India? If, for example, something happens in Afghanistan?

      To India by sea, then north across Pakistan? Have you looked at the map for a long time?
      Figuratively, there is a more direct and easy access to the tonsils. Why is it for India and Russia?
      1) Doesn't India have access to the coast?
      2) Does India have such good relations with Pakistan and do they dream of increasing dependence on their neighbor?
      3) Isn't TAPI a brainchild of the Americans and are they really interested in Russia's participation?
      1. Radziminsky Victor (Radziminsky Victor) 30 May 2021 02: 56
        -1
        The United States is not interested in the end of conflicts in this region. Yes.
        And they are not very interested in the presence of Russia.
        And the US is very interested in the Afghan mujahideen militants.
        And what is Russia interested in?
        After all, TAPI, plus the Pakistani stream of Russia, pass through Afghanistan.
        This means that there is a chance for Russia to participate, together with India and others.
        participants of the project, in "harmonization" of what is happening in Afghanistan.
        And of course - "all this is for the evil of the United States."
        1. 123 Offline 123
          123 (123) 30 May 2021 08: 18
          +1
          And what is Russia interested in?

          I repeat, Russian companies in Pakistan will earn a "small share" and that's all, at least for now. This has a rather indirect relationship to Afghanistan.

          After all, TAPI, plus the Pakistani stream of Russia, pass through Afghanistan.

          Are you sure about that?


          This means that there is a chance for Russia to participate, together with India and others.
          participants of the project, in "harmonization" of what is happening in Afghanistan.
          And of course - "all this is for the evil of the United States."

          What are you, in a country controlled by the United States, gathered with the Turkmenbashi and Pakistanis to harmonize?
          The country is really partially under control, but this is enough to turn all your good intentions and "positive developments" into nothing.
          To "harmonize what is happening in Afghanistan," it is necessary first of all to expel the American occupiers and their European henchmen from there.
  4. gorenina91 Offline gorenina91
    gorenina91 (Irina) 29 May 2021 15: 11
    -6
    Why does Russia need "Pakistani Stream"

    - Yes, really - why ???

    [Islamabad intends to close its growing demand for "blue fuel", is the TAPI gas pipeline. It originates from the giant Galkynysh field in Turkmenistan and must pass through Afghanistan, Pakistan and India

    - And who asked permission from China ??? - All the gas in Turkmenistan ... - is de facto already Chinese ... - And China will not let "its Turkmen gas" be squandered just like that

    In the future, the "Pakistani Stream" should be connected to the TAPI trunk pipeline. Thus, a unified gas transportation infrastructure will be created in this country, the co-owner of which will be the Russian side.

    - Russia has a very fragile position in this region; no common borders with Pakistan; all around "not very friendly states" ...
    - India (as if to spite Russia) acquires expensive French "Rafale" (Rafale) and with all this does not cease to beg from Russia all sorts of preferences; and Pakistan and India are two hostile states; as well as China and India ...
    - What is it ... here ... is there a benefit for Russia ???
    - But there is still a "benefit" ... - this is an opportunity to make a huge profit on this whole "project" ... - after all, huge uncontrolled Russian money will be invested there (in this whole "Pakistani stream") ... - Hence the legs growing ...
  5. Sergey Latyshev Offline Sergey Latyshev
    Sergey Latyshev (Serge) 29 May 2021 21: 52
    0
    Strange title.
    Money doesn't smell. There are not few of them in the pockets of capitalists.
    And Pakistan is quite a developed nuclear country by those standards ...
  6. Radziminsky Victor (Radziminsky Victor) 30 May 2021 02: 10
    0
    Firstly, Russia is pushing through, seeping, (as you wish) - into the region that they wanted
    control - only the United States and China.
    Participate ... - at least through TAPI, at least only 26% - but this is knocking around - and cooperating,
    at least three of us - China, India, Russia. The United States will not cooperate.
    Secondly -
    And the most important thing for this region is that all the participants in these projects, 5-6 countries, except for the USA,
    will be interested in normalizing what is happening in Afghanistan.
    This is how many interested "accomplices" in the pacification of Afghanistan. Together with Russia.
    As a result - China, India, Russia, can push, slightly, the United States "from there" Well, maybe.
    And what exactly is the United States doing there?
  7. Vladest Offline Vladest
    Vladest (Vladimir) 31 May 2021 00: 03
    0
    Taking into account the fact that prices in the EU have a steady downward trend, while in Asia, on the contrary, the reorientation of the Russian gas market there is a reasonable decision. In general, there is a tendency in the world to outstrip the growth of gas production over its consumption. This means that gas prices will fall. This means that in the long term the pipes will not be able to pay for themselves.