''Gas line deal likely by 2006''

Pakistan and its neighbours will be able to decide by 2006 which of three competing trans-national gas pipelines should go ahead first, a senior official said on Tuesday. "Roughly within a year, maybe in the beginning of next year, we should be able to decide which pipeline is feasible," Petroleum and Natural Resources Ministry Secretary Ahmad Waqar told Reuters on the sidelines of a roadshow to lure investors to 20 oil and gas blocks.
Pakistan and India are considering three gas pipeline projects - from Turkmenistan, Iran and Qatar - which are often called "pipedreams" because of delays caused by security concerns. "We expect these pipelines to be laid by the time we are faced with shortages around 2010-2011," Waqar said, adding that by that time Pakistan''s energy demand/supply gap could be as wide as 20 million tonnes of oil equivalent a year.
Pakistan, which projects economic growth of seven percent this year, currently produces 3.5 billion cubic feet of natural gas per day, meeting just 50 percent of its needs.
Waqar said in the fourth quarter of this year Pakistan would also decide on liquefied natural gas (LNG) imports, with Qatar emerging like the most likely source. "It could be Oman, it could be Yemen, but the most likely candidate appears to be Qatar," he said.
Pakistan offered 20 blocks for oil and gas exploration at the roadshow, luring investors with tax breaks and low tariffs as it tries to fend off the impact of high crude prices on its economy. Its annual crude import bill is about $3 billion.
"It does not matter if prices are going up or down on the international market, we are pressing hard for our own energy sources," Petroleum Minister Amanullah Khan Jadoon told Reuters.
Several foreign firms have entered Pakistan in recent years, with energy accounting for a quarter of last year''s foreign direct investment. Analysts say high crude prices have made exploration in far-flung oil and gas basins economically viable. France''s Total, Britain''s BP and Austrian OMV are among firms involved in oil and gas production in the country.
However, investors remain concerned about long-term political stability in Pakistan. "The outcome of the 2007 election is the key to any investment decision in this country," one Western investor said.