Pakistan and China are heading towards another milestone in the history of cordial relations. This time the energy starved Pakistan will import liquefied natural gas (LNG) from China. According to Minister of Petroleum and Natural Resources Shahid Khaqan Abbasi, Pakistan has started construction work on a 700-kilometre pipeline to import LNG from China and the project will be jointly funded by the governments of the two friendly countries. He says that the Chinese funds will also be beneficial for Pakistan-Iran gas pipeline project as the big hurdle in the way of the project has been removed after Iran’s nuclear deal with major powers of the world. Iran has strong economy and it is going to stimulate further after sanctions are lifted.
On another note, the Gwadar port will work as the hub for the Pakistan China Economic Corridor, allowing the Chinese government to use this port for import of oil and export of its goods, cutting thousands of mile long sea routes. Pakistan has been facing severe energy crisis for the last two decades and it can improve its industrial growth by importing gas from Iran, China and central Asian states. The sanctions on Iran were creating difficulties in the way of the project, but now the world scenario has been changing and completion of the project is possible within the specified time. However, it is good omen that the government has decided to import LNG from China, which will give the local industry a new lease of life.
The Economic Coordination Committee of the cabinet has already approved the construction of 42-inch diameter pipeline to transport liquefied natural gas from Gwadar to Nawabshah. The terminal will have the capacity to store up to 500 million cubic feet per day gas. The committee has also directed the petroleum ministry to finalise the funding plan on a government-to-government basis. According to Abbasi, the plan is commercially viable as Japan, Russia and China have taken keen interest in this project. Reports suggest that the economic corridor will link Gwadar, Khuzdar and other areas on way to Dera Ghazi Khan, Dera Ismail Khan and Peshawar along its central route. The eastern route of the project will connect Gwadar with Ratodero, Sukkur, and Karachi and upward cities in Punjab. Balochistan is one of the most unstable provinces of the country and it is hoped that the mega projects will not only provide basic infrastructure to sparsely populated areas of the province, but will also help uplift the living standard of the local people.