Indian State gas utility GAIL has proposed to lay a 110-km pipeline from Jalandhar to Wagah border via Amritsar to supply natural gas to Pakistan, company Chairman and Managing Director B C Tripathi told media here.
According to details the gas in its liquid form (liquefied natural gas or LNG) will be imported at ports in Gujarat and moved through GAIL's existing pipeline network to as far as Jalandhar. It will then be moved through the proposed line."Pakistan has showed interest in buying LNG from us to meet its energy demands. The export is techno-commercially feasible. We can do that subject to Government of India approval and reaching a commercial agreement", Indian media quoted the GAIL chief as saying.
He said, "Initially, Pakistan wants to take 1-1.5 million tonnes of LNG. "Pricing and other commercial negotiations are going on." However, Tripathi did not give any specifics.
LNG imports into India are currently in the range of USD 13-14 per million British thermal unit and after including customs or import duty, pipeline transportation charges and local taxes, the delivered price will be close to $21.
Pakistan, which does not have an LNG import facility at present, is willing to buy LNG from the company provided India exempts it from taxes to bring down the cost.
Tripathi further added that pipeline exports to Pakistan were viable and should be looked at in the context of India looking at importing gas through a cross-country Turkmenistan-Afghanistan-Pakistan-India pipeline.
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