Pak-Gazprom sign MoU for co-op in natural gas development, exploration
By Ali Imran

ISLAMABAD—Pakistan and Russia’s Gazprom Friday inked a MoU to cooperate in development and operation of trans-national gas pipelines, research and development of gas fields, and conversion of diesel engines to run on natural gas.
The agreement that was signed in the presence of Prime Minister Shaukat Aziz at the PM House also deals withprivatisation of oil and gas companies in Pakistan, development and operation of underground gas storage systems besides provision of training facilities for Pakistani experts in oil and gas sectors.
Secretary Petroleum Ahmad Waqar and Chairman of Gazprom Alexei B. Miller signed the agreement. Prime Minister Shaukat Aziz termed the agreement an important development, saying Pakistan has sought assistance of the Russian gas company to work on a “fast track basis” in natural gas development projects.
Gazprom is world’s biggest company dealing in natural gas extraction, and has also shown interest in the construction of the $7.4 billion Iran-Pakistan-India pipeline that would bring gas from the South Paras fields in Iran.
The company, along with TotalFinaElf of France and Malaysian Petronas, is also a major shareholder of the Iranian South Pars field. The Prime Minister said Gazprom would also provide technical expertise in use of old gas fields for gas storage.
The construction of underground gas storage facility would help the country meet its energy needs during the winters, when the demand is high. He said the MoU would also help further strengthen the political and diplomatic relations between the two countries.
Gazprom supplies almost all the gas needs of central and eastern Europe and the former Soviet Union. With sales of US$ 31 billion in 2004, it accounts for about 93% of Russian natural gas production and with reserves of 17,800 km3, it controls 25% of the world’s gas reserves.
The Prime Minister to a question said Pakistan was in the process of appointing a financial expert to prepare the feasibility of the Iran-Pakistan-India gas pipeline project. He said there has been an overwhelming response of investors on the project from around the world.
He said he informed the Gazprom delegation about Pakistan’s 25 year economic growth programme, which needs increased energy to meet its demand. Chairman of Gazprom Alexei B. Miller was appreciative of the business environment in Pakistan and said his company was interested in investing in construction of new pipelines, gas storage facilities and also wanted to participate in the privatisation of Pakistani gas companies.
Pakistan is studying four gas pipeline projects to meet its growing energy needs, including the Turkmenistan-Afghanistan gas pipeline project, the Qatar-Pakistan underwater gas pipeline and LNG from Qatar. The joint working group of Pakistan and India have already agreed on a 56-inch diameter pipeline to provide a about 5.6 bcfd (billion cubic feet per day) of gas by 2015 from Iran.
A Coordination Committee would be established under the MoU, , which would set up Working Groups to discuss cooperation in specific areas.