Gazprom Explores Possible Submarine Gas Pipeline to South Asia

Russian energy major Gazprom stated they will start a feasibility study in the first quarter of 2020 for laying an undersea gas pipeline.

The feasibility study will begin in the first quarter of 2020 and will be completed in a year’s time. If the study is found practical, the project will be laid undersea within three to four years.

The pipeline will begin from the Arabian Gulf and stretch up to Pakistan, India and Bangladesh. It will ultimately end in China after touching Myanmar and Thailand. The total cost of the pipeline is estimated up to $25 billion.

The pipeline will pass through shallow waters of Pakistan, India and Bangladesh and will be provided security from Pakistan’s navy.

Both Pakistan and India have separately signed an agreement with Russia for the undersea pipeline project. Under which both countries will receive gas through the pipelines. It is estimated that Pakistan will get up to 1 billion cubic feet per day gas from the undersea pipeline.

Russia has already established an agreement with Pakistan on the North South Gas Pipeline project. It is estimated to cost $2 billion to 2.5 billion. In addition, Gazprom has shown significant interest in building gas storages in Pakistan. The investment is anticipated to reach $400 million to 500 million.

Gazprom has had a 45 year-on-year drop in net profits in the third quarter of 2019. The reason for low profits was attributed to falling gas prices and sales volumes in Europe.