Daily Times

Pakistan is among the countries that are advancing their Liquified Natural Gas (LNG) storage and dispensation infrastructure.

The country lies at the crossroad of Central and South Asia, alongside important waterways. Its geographical location allows for easy access to neighbouring Iran’s natural gas reserves, which are the world’s second largest.

Pakistan is deficient in energy because of mismanagement. Countries that boast the same size, population, GDP, and military, etc., also have a robust infrastructure for energy. Whether it is a department or a ministry that keeps a check on all the issues, they have a system in place. However, in Pakistan, this area is mostly ignored.

The nation and its leaders are haunted by the word energy. We have electricity shortfalls, fuel storage issues, and even suffer from fuel import problems. LNG could possibly become a solution to all our problems. This solution could put Pakistan on the list of countries that are energy secure. And to do so, Pakistan will need all the LNG it can buy.

However, it is pertinent to mention here that LNG infrastructure is extremely expensive to develop and maintain. It suits countries with high GDPs and growth rates, and absolutely no debt or financial issues. Pakistan needs to adopt energy solutions that suit its geography and financial profile. It needs to rely on energy sources that can ensure uninterrupted supply of fuel, without having to bid for more.

Pakistan needs to adopt energy solutions that suit its geography and financial profile. It needs to rely on sources that can ensure uninterrupted supply of fuel, without having to bid for more

The Pakistan-Iran pipeline is the need of the hour. The TAPI pipeline is a risky gamble, that was initiated by the Pakistan Muslim League — Nawaz (PML-N) government. If we look at both the modes of fuel transmission, we see choke points. In the case of TAPI, Afghanistan is an issue. On the other hand, opting for LNG means a financial burden in terms of the mode of transportation.

The Power of Siberia is another gas pipeline that could prove to be a solution. However, this one requires smooth sailing from both Russia and China, who are the provider and receiver of the natural gas, respectively.

China is already looking to divert its energy supplies and trade through Pakistan, rather than depending on the Straits of Malacca. This may prove to be the only option that makes sense.

Energy security is a strategic need at this point. Pakistan needs to ensure that it gets energy from a source that has no chokepoints. India shunning Pakistan as a transit route for its own pipeline shows that the chokepoint issue is indeed a large one.

Pakistan is well on its way to becoming a production-based economy, where large industries will emerge within the next two decades. This is because of the China-Pakistan Economic Corridor (CPEC). However, Pakistan’s energy equation does not align with this picture of the future.

The author has an MSc in Strategic Studies from NDU Islamabad

Published in Daily Times, August 12^th 2018.