The natural gas pipeline to India has been unbundled from everything else, said Prime Minister Shaukat Aziz in response to a question whether agreement on this project is also dependent on progress in the resolution of the Kashmir dispute between India and Pakistan. Addressing media personalities over breakfast at the World Economic Forum here on Saturday, the Prime Minister said that the solution of other issues can take time but progress on them could only be in tandem with the efforts to address the core issue of Kashmir.
However, our offer to India in respect of gas pipeline, he said, is based on the notion that it is a win-win for both sides as it addresses the growing future needs of both countries.
Unfortunately, he said, the Indian response to our proposal presented in Delhi last November, "added on bells and whistles."
To this we responded that Pakistan will go ahead with or without Indian collaboration.
He said, "I am going to Iran next month and would take up the issue with the government of Iran. In the meanwhile, if we receive a positive Indian response, then the Petroleum Ministers from the three countries, namely, Pakistan, Iran, and India would meet. It should not be a photo-opportunity but a serious discussion on commercial viability, risk mitigation etc."
There are four proposals on the table, (a) gas from Iran; (b) gas from Turkmenistan; (c) gas from Qatar; and (d) shipment of gas in liquefied form.
Shaukat Aziz said even though the cost of producing LNG is coming down it is still more costly than direct supply through pipelines.
He said, "We are aware of the Australian offer to India for a long-term supply of LNG and are also aware of the lobbies pushing for it. But India has to make up its mind."
In terms of length, the Turkmenistan route is the shortest and the project could cost from $2 to 4 billion depending on the Indian response.
He said, "let us not get bogged down in 'not invented here syndrome.' Both sides have to be comfortable. Transit fee is only an ancillary advantage. We should not be looking for upmanship or scoring points."