Since the discovery of natural gas reserves in Iran's South Pars fields in 1988,the Iranian government began increasing efforts to promote higher gas export abroad. Iran and India signed an agreement for an overland natural gas pipeline in 1993. In 1995, Pakistan and Iran signed a Preliminary agreement for construction of a natural gas pipeline linking the Iranian South Pars natural gas field with Karachi. Iran later proposed an extension of the pipeline from Pakistan to India. The exportation of natural gas from Iran to India through Pakistan is a venture, which may change the face of regional politics in South Asia. This kind of trade between Iran, India and Pakistan challenges the geopolitical, historical and strategic realities of the three countries and the general regions of Mideast-and Asia. In this way, the relationship between the pipeline venture and globalization is multidisciplinary. It is not characterized solely by economic factors, even though the current economic realities in Iran, India and Pakistan do foreshadow the future necessity of economic collaboration.
Holding approximately 9 percent of the world's total reserves, Iran is OPEC's second largest producer of oil. Along with oil reserves, Iran contains the world's second largest natural gas proven reserves at an estimated 812 trillion cubic feet (Tcf) that is 15 percent of the total world's reserves. While Pakistan has 21.6 trillion cubic feet (Tcf) and India 22.9 Tcf gas reserves. Iran is keen to exploit this source as a source of revenue. One of the biggest potential customers so far is India, and negotiations for a pipeline stretching across Pakistan have been going on since the mid-1990 s. After meeting with Iranian president Mohammad Khatami in New York in September 2000, General Parvez Musharraf expressed Pakistan's willingness to participate in the pipeline venture and promoted the idea as an example of regional cooperation, and in 2002 Iran and Pakistan signed an agreement on a feasibility study for a such pipeline project.
India produces 90 million standard cubic meters per day (mcmd), his demand is 150 mcmd, and after the installation of the Iran-Pakistan-India gas pipeline, India would get further 60mcmd through it. According to the Energy Information Administration, natural gas use in India was nearly 25 billion cubic meters in 2002 and is to reach 34 billion cubic meters in 2010.
The gas pipeline main route starting from Asaluyeh near the Iranian South Pars fields and travels to Pakistan through Khuzdar, with one section of it going on to Karachi and the main section traveling on to Multan. From Multan, the pipeline travels to Delhi, where it ends. It would be 2670 km long with a 48- inch diameter, but origin of it will be Turkmenistan's Dualtabad fields the world's forth largest gas reserves. It is expected to cost $ 4.1 billion and take three years to build. The pipeline will carry up to 30 billion cubic meters of natural gas per year. 760 kilometers of its length will pass through Pakistani territory, so a cash starved Pakistan is expected to earn nearly $600-700 million a year in royalties from a transit fee and save $200 million by purchasing cheaper gas from this pipeline project. While India coudd save about $300 million a year by importing the piped natural gas instead of more costly liquefied gas. Pakistan is also hoping to use the same pipeline for importing gas for its own purpose. Pakistan and India will need 200 million standard cubic meters of gas daily, through this link.
India's burgeoning industry is desperately looking for natural gas, the cleanest and cheapest fuel. The main environmental benefit of using natural gas is that in switching from high-carbon coal to low- carbon natural gas, the output of carbon dioxide is reduced. This in effect contributes to reducing the effect of global warming since carbon dioxide is a major source of global warming.
India has expressed concerns over security matters. Pakistani government has approved the pipeline project and offered high security for a continuous flow of gas. Pakistan has guaranteed to Iran and India that security of the pipeline remains of topmost concern and will be ensured. Here is an example of the Soviet gas pipelines that fed Western Europe through Eastern Europe even during the Cold War. And, it is a fact that the project is beneficial for Pakistan also.
Due to these kind of reasons the previous Indian government of Vajpayee even considered laying the pipeline under the sea to avoid Pakistani territory, however that plan would cost three times more.
The pipeline would be traveling from Iran to Karachi and then Multan, which is an urban city located in the heart of the Punjab. The land between the southwestern Pakistani-Iranian border and Multan is predominantly a desert and dry area populated by tribal communities living in villages. It is proposed that the pipeline will be opened for domestic use in Multan. However, the fact that it travels through remote rural areas where renewable energy is in demand, prospects for extending the pipeline into a domestic network providing natural gas to village population exists.
The construction of such a lengthy pipeline will employ large amounts of local labor. This will provide temporary employment for many of Pakistani rural poor; it may also interfere with domestic labor dynamics. While physical construction of the pipeline will require large amounts of unskilled labor, other technical aspects of pipeline implementation will require skilled and educated workers with backgrounds in science and technology.
The President of Pakistan, General Parvez Musharraf has expressed support for the $ 4.1 billion project, during his Indian visit in April, this year. He says energy link is in the interest of all three countries and they benefit from it and we should go for our national interests. Similarly, when Pakistani Prime Minister Shaukat Aziz made his first visit to India, talks were not limited to politics. Mr. Aziz revived an eight- year- old project to build a $ 4.1 billion pipeline project.
Both India and Pakistan must reevaluate their positions on the Iran-Pakistan-India pipeline project. They must view the project as the emergence of an economic globalization by which regional cooperation could save them from common future crisis. For other governments, trade between India and Pakistan may lead to also participate in greater regional trade. An agreement between Iran-Pakistan-India on the pipeline project will be consider historical because it also directly impacts the regional conflicts. Economic collaboration indirectly sows the seeds for a shift in regional politics and perspective. The project forces the three countries to reconsider their political discourse and interdepedence. Improved trade relations are viewed, as methods to ameliorate communication gaps or differences in regional conflicts. For Pakistan the pipeline project is an extremely good idea. In relation to the Iran-Pakistan-India pipeline, these issues are highly significant.The Pakistani final decision on this project will directly impact the political and social discourse, foreign policy decisions, security concerns, and regional disputes like Afghanistan, Kashmir and sectarian violence.
No comments:
Post a Comment