By an OGJ correspondent
KARACHI, Aug. 19 -- A $3.2 billion natural gas pipeline from Iran to India via Pakistan is showing more promise with the expectation that Pakistan and Russia will sign a memorandum of understanding (MOU) in Moscow the second week of September allowing studies for the pipeline to proceed.
The MOU would allow Russian energy firm OAO Gazprom to launch a prefeasibility study on the construction of the pipeline into or across Pakistan and to negotiate with international financial institutions for monetary support for the project. It also says that under a confidentiality agreement, Pakistan would facilitate the efforts of the Russian firm and provide available information in the areas of interest regarding the oil and gas sector.
Pakistan, in turn, stands to benefit from the receipt of a portion of the line's natural gas to fuel its program of converting diesel vehicles to compressed natural gas (CNG)—a program in which Gasprom would assist.
The MOU follows a visit of a Gazprom high-level delegation to Islamabad during the last week of May, at which time the Pakistan ministry of petroleum and natural resources had encouraged Gazprom to proceed on the project and to help convert diesel engines in Pakistan to CNG. Gazprom had discussed these issues with Indian authorities earlier this year and with Iranian officials in April.
Pakistani Petroleum Minister Usman Aminuddin had then been invited to Moscow in July by his Russian counterpart to sign the MOU, but the meeting was later postponed to the September date.
Under the MOU, Gasprom also would prepare proposals of cooperation for consideration by the Pakistani government, to be followed up by relevant agreements of cooperation.
Both parties would also participate in an exchange of visits to each other's countries to enhance cooperation for their mutual benefit. All disputes concerning the interpretation and application of the MOU would be settled through mutual consultations.
The MOU would be valid for 1 year or until the conclusion of an alternative relevant agreement.