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Project Insights

Saudi resistance may stymie Pakistan pipelines

Pakistan could struggle to make progress on building pipelines to import gas from Iran after having agreed a large financial assistance package with Saudi Arabia Pakistan could struggle to make progress on building pipelines to import gas from Iran after having agreed a large financial assistance package with Saudi Arabia.
By Andrew Walker 14 February 2019 Asia Pacific / Pipelines, Storage & Power 0 33940
A meeting between Gazprom executives and Pakistani officials. (Gazprom)

The key issue: Russia’s Gazprom and Pakistan’s Interstate Gas Systems signed an inter-corporate agreement last week to build a $10 billion gas pipeline from the Iranian waters of the Gulf of Oman to Gujarat in India with a spur to the Pakistani port of Gwadar.

Interfax analysis: Pakistan will struggle to make progress on any pipeline project that sources gas from Iran given recent large capital investments from Saudi Arabia. And with little chance of progress on such projects, Pakistan will become increasingly reliant...