Page 8 - AsianOil Week 29 2021

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Russia, Pakistan

deepen energy ties

COMMENTARY THE Russian government is continuing a policy resurgence of the Taliban, who have captured
of deepening ties with other G20 members and most of the country only weeks after the last US
emerging markets in its regions through new boots left Afghan soil.
energy and security deals with Pakistan. Nevertheless, Russia is actively developing
Russia has promised to build a new $2.5bn ties with Pakistan on the other side of Afghan-
natural gas pipeline in the country and offered istan and is clearly hoping that this will aide in
its traditional package where energy deals are talks with the Afghanis so the bridge can even-
accompanied with arms deals. Moscow has tually be opened to trade and transit through the
also offered to help support Pakistan in its fight mountainous country.
against terrorism with arms sales. At the same time, analysts say Russia’s invest-
Central Asia has found a new regional signif- ments in Pakistan are part of a policy to acquire
icance not seen since the dying days of the Brit- a new energy market to offset an anticipated
ish Empire as the region starts to blossom and declining European energy export business as
the five ‘Stans – Kazakhstan, Uzbekistan, Tajik- the EU’s Green Deal comes into effect in the next
istan, Turkmenistan and Kyrgyzstan – reach out few years.
to each other to increase mutual co-operation On July 15, a Russian delegation signed an
while at the same time developing energy and agreement in Islamabad for the Pak Stream Gas
trade ties in all directions. Pipeline (PSGP) project, formerly known as the
The relations between the ‘Stans and Russia North-South Gas Pipeline Project. The pipeline
have been well established since Soviet times and will join the family of the Nord Stream 1 & 2
remain focused on the extensive oil and gas pipe- gas pipelines in northern Europe and the Turk-
line network that runs out of the region and into Stream pipeline that connects Russia to Turkey.
the Russian pipeline network. Russia has also built the Power of Siberia gas
New pipelines to the west, principally the pipeline that connects its western Siberian gas
Baku-Tbilisi-Ceyhan (BTC) pipeline, opened a fields to China’s underdeveloped north-west
new direction to southern Europe in the nough- territories.
ties and more pipelines to China have enabled The Pak Stream 1,100-km pipeline will more
energy supplies to China in the east. But the one than double Pakistan’s current capacity to trans-
cardinal point that remains closed is to the south port 340mn cubic metres of imported natural
as instability and two decades of war have meant gas per day from liquid natural gas (LNG) ter-
the southern direction has remained blocked. minals in the southern port of Karachi to Punjab
Now the US has withdrawn from Afghan- in the north, where there is high demand. It is
istan the ‘Stans and Russia have hopes that the expected to come on stream by 2023.
southern route will open up to both Russia and The pipeline will be the first major Rus-
Central Asian exports – hopes that appear to sian investment in Pakistan in decades since it
have been temporarily dashed by the sudden helped establish the Oil and Gas Development

P8 www. NEWSBASE .com Week 29 22•July•2021