KARACHI: Pakistan and Russia on Thursday signed a memorandum of understanding (MoU) in Moscow for the construction of the marine gas pipeline, the Russian Ministry of Energy confirmed to Arab News.
“Deputy Minister of Energy of the Russian Federation Anatoly Yanovsky and Deputy Minister of Energy of Pakistan Sher Afgan-Khan signed a Memorandum of Understanding between the Ministry of Energy of the Russian Federation and the Ministry of Energy of the Islamic Republic of Pakistan on cooperation in implementing the offshore pipeline project,” the ministry said in a statement issued after the signing of the agreement.
According to the agreement the gas from fields in Iran will be supplied to consumers in Pakistan and India. “I think this will create additional conditions for the signing of the same document with the Indian side,” said Yanovsky.
“The Memorandum provides for the identification of authorized organizations through which the project will be supported, including when developing a feasibility study — identifying the resource base, configuration and route of the gas pipeline,” the statement added.
The deputy minister noted that the interaction between Russia and Pakistan in the fuel and energy sector is not limited to the offshore pipeline project: in particular, consultations are being held on the North-South gas pipeline project.
According to Anatoly Yanovsky, the project of LNG supplies to the Pakistan can become a promising direction of cooperation. An intergovernmental agreement on the supply of oil products from Russia to Pakistan is also under consideration. In addition, the Russian electric power industry has also shown interest in the Pakistani market.
Pakistan and Russia have signed the agreement at a time when the United States of America is mounting pressure on the countries to not deal with Iran. “It is a bold call which shows that Pakistan is not going to bow to the US threats,” said Muzamil Aslam, senior economist, adding: “This could have repercussions as the US may pressurize Pakistan through other countries and may induce its investors withdraw their investment from Pakistan stock market.”
The underwater pipeline is expected to be completed within three to four years of the signing of the agreement. The pipeline could supply from 500 million cubic feet to 1 billion cubic feet of natural gas per day.
A feasibility study of the project will be conducted by Russian energy giant Gazprom. The project will be jointly handled by Pakistan’s state-owned Inter State Gas Systems (ISGS) and Gazprom.
The ISGS is currently engaged on mega gas pipeline schemes such as the $10 billion Turkmenistan – Afghanistan – Pakistan – India (TAPI) gas pipeline project, which aims to bring natural gas from the Gylkynish and adjacent gas fields in Turkmenistan to Afghanistan, Pakistan and India.
The Asian Development Bank is acting as the facilitator and coordinator for the TAPI project. The feasibility study, proposed to lay a 56-inch diameter 1,000-mile pipeline with design capacity of 3.2 billion cubic feet of natural gas per annum (Bcfd) [IS THIS PER DAY OR PER ANNUM] from Turkmenistan through Afghanistan and Pakistan up to the Indian border. The project is scheduled to commence operations in 2020.
The increased supply of gas to Pakistan will have positive impact on the economy of the country, said Muzamil Aslam commented. “Pakistan’s energy needs would be met and our industries, particularly export industry, will benefit to large extent and employment opportunities would also increase.”
Pakistan, Russia sign MoU for construction of $10 billion marine gas pipeline
Pakistan, Russia sign MoU for construction of $10 billion marine gas pipeline
- The gas from fields in Iran will be supplied to consumers in Pakistan and India through the marine pipeline
- Development is a bold call in the face of mounting pressure on Iran which shows Pakistan’s resilience, Muzamil Aslam
Pakistan’s OGDC ramps up unconventional gas plans
- Pakistan has long been viewed as having potential in tight and shale gas but commercial output has yet to be proved
- OGDC says has tripled tight-gas study area to 4,500 square km after new seismic, reservoir analysis indicates potential
ISLAMABAD: Pakistan’s state-run Oil & Gas Development Company is planning a major expansion of unconventional gas developments from early next year, aiming to boost production and reduce reliance on imported liquefied natural gas.
Pakistan has long been viewed as having potential in both tight and shale gas, which are trapped in rock and can only be released with specialized drilling, but commercial output has yet to be proved.
Managing Director Ahmed Lak told Reuters that OGDC had tripled its tight-gas study area to 4,500 square kilometers (1,737 square miles) after new seismic and reservoir analysis indicated larger potential. Phase two of a technical evaluation will finish by end-January, followed by full development plans.
The renewed push comes after US President Donald Trump said Pakistan held “massive” oil reserves in July, a statement analysts said lacked credible geological evidence, but which prompted Islamabad to underscore that it is pursuing its own efforts to unlock unconventional resources.
“We started with 85 wells, but the footprint has expanded massively,” Lak said, adding that OGDC’s next five-year plan would look “drastically different.”
Early results point to a “significant” resource across parts of Sindh and Balochistan, where multiple reservoirs show tight-gas characteristics, he said.
SHALE PILOT RAMPS UP
OGDC is also fast-tracking its shale program, shifting from a single test well to a five- to six-well plan in 2026–27, with expected flows of 3–4 million standard cubic feet per day (mmcfd) per well.
If successful, the development could scale to hundreds or even more than 1,000 wells, Lak said.
He said shale alone could eventually add 600 mmcfd to 1 billion standard cubic feet per day of incremental supply, though partners would be needed if the pilot proves viable.
The company is open to partners “on a reciprocal basis,” potentially exchanging acreage abroad for participation in Pakistan, he said.
A 2015 US Energy Information Administration study estimated Pakistan had 9.1 billion barrels of technically recoverable shale oil, the largest such resource outside China and the United States.
A 2022 assessment found parts of the Indus Basin geologically comparable to North American shale plays, though analysts say commercial viability still hinges on better geomechanical data, expanded fracking capacity and water availability.
OGDC plans to begin drilling a deep-water offshore well in the Indus Basin, known as the Deepal prospect, in the fourth quarter of 2026, Lak said. In October, Turkiye’s TPAO with PPL and its consortium partners, including OGDC, were awarded a block for offshore exploration.
A combination of weak gas demand, rising solar uptake and a rigid LNG import schedule has created a surplus of gas that forced OGDC to curb output and pushed Pakistan to divert cargoes from Italy’s ENI and seek revised terms with Qatar.
