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With trade ties between India and Pakistan thawing, there is a possibility of India exporting petroleum products and R-LNG to its neighbour. To begin with, export of gas could be initiated.
The commencement of gas flows on GAIL (India) Ltd's expanded pipeline network up to Bhatinda, which was dedicated to the nation by the Prime Minister, Dr Manmohan Singh, at the 7th Asia Gas Partnership Summit, 2012, could provide an impetus to this.
Officials to meet
Officials of the two countries are expected to meet soon to discuss modalities of the gas flow and petroleum products trade. Mr Muhammad Ejaz Chaudhry, Petroleum Secretary, Government of Pakistan, said that his country needed energy products and the recent improvement in trade ties with India could pave the way for this.
On R-LNG supply from India, sources said, gas in its liquid form — Liquefied Natural Gas — can be imported at Dahej or Hazira LNG terminals in Gujarat and then moved to the Pakistan border using the recently commissioned Dahej-Vijaipur-Dadri-Bawana-Nangal-Bhatinda pipeline.
The Prime Minister, Dr Manmohan Singh, too, in his inaugural address at the Summit said, “I understand that it (pipeline network) has the potential to be extended up to the border with Pakistan.”
Mr Chaudhry said that Pakistan needed immediate supplies of petrol to bridge its widening deficit. It is looking at starting petrol imports from India at the earliest, but issues of quality and specification needed to be sorted out before that.
“I discussed importing petrol from India during talks with the Petroleum Secretary, Mr G.C. Chaturvedi here,” he said. India, on its part, has agreed in principle to supply fuel to Pakistan. The supplies could be from HPCL-Mittal's Bhatinda soon-to-be-commissioned refinery and Indian Oil Corporation's refinery.
As regards fuel specifications being an issue – Pakistan sells Euro-II grade of fuel, Indian refineries produce Euro III and IV standards – he said, and added that refineries in Pakistan were upgrading themselves.
Mr Chaudhry also said that talks on transit fee for the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline network had recently taken place. The two countries may sign an agreement on the same soon.
Transit fee
While India has to pay transit fee to Pakistan and Afghanistan for allowing passage of gas that it wants to buy from Turkmenistan, Pakistan has to pay transit fee to Afghanistan.
“We have agreed on a uniform fee. Pakistan has agreed that it will accept the same fee that India agrees to pay Afghanistan,” an official said.
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