Gazprom mulls LNG options for Pakistan

Pakistan facing chronic energy shortages as it awaits gas pipeline development.
By Daniel J. Graeber  |  Jan. 21, 2016 at 8:38 AM
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MOSCOW, Jan. 21 (UPI) -- Russian energy company Gazprom said one of the more promising areas for cooperation with Pakistan was in the field of liquefied natural gas.

Gazprom Chairman Alexei Miller hosted a delegation from the Pakistani Energy Ministry in Moscow to discuss the potential for future cooperation.

"The parties considered promising areas of cooperation, particularly addressing the possibility of Russian LNG supplies to Pakistan," the Russian company said in a statement.

Islamabad has worked with its counterparts in China on the construction of an LNG terminal and associated pipeline infrastructure at the port city of Gwadar near the Iranian border. The facility, the country's first, went into service in May 2015.

Pakistan consumes most of the natural gas it produces and the country has faced chronic energy shortages. Pipelines slated for future development may help address shortages, though many of those projects depend in part on Iran or Afghanistan, where geopolitical issues may inhibit development.

LNG is delivered by maritime shipping, freeing it from some of the constraints associated with pipeline development. Russia, one of Europe's largest gas suppliers, has faced obstacles with pipeline development because of competition concerns from Brussels.

Pakistan and Qatar signed a memorandum of understanding for LNG supplies in 2012.

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