Gas Stream Project Faces Delays and Challenges

The Gas Stream project in Pakistan has been marred by significant delays since its inception in 2015. Originally a collaboration between Pakistan and Russia, the project aimed to bolster the country's gas supply infrastructure. However, the imposition of US sanctions on Russian entities threw a wrench into the works, leading to a series of restructuring efforts.

Despite attempts to attract investors from China and the UAE, Pakistan found itself at a crossroads, eventually deciding to incorporate gas storage into the project. This shift came amidst allegations of neglect towards gas storage facilities in previous administrations, which had favored LNG terminals instead.

The project, which initially focused on a pipeline from Karachi to Lahore for LNG transportation, hit a roadblock when discussions arose about relocating the starting point to Gwadar. This proposed change faced resistance from Russia, causing tensions during negotiations.

Despite numerous restructuring endeavors and ownership agreements, such as a recent deal where Pakistani companies were slated to hold 74% of shares, the project continued to encounter setbacks. Proposed models like the build-operate-transfer (BOT) basis were met with hesitance from Russian counterparts.

The delays were primarily attributed to the involvement of multiple stakeholders, with allegations of interference from businessmen associated with Russian companies in Pakistan. Furthermore, disputes over gas infrastructure development cess (GIDC) payments by the textile and fertilizer industries further complicated matters.

Efforts to address these issues, including court mandates for GIDC payments, have been met with legal hurdles, prolonging the completion of the gas pipeline project.

The Gas Stream project in Pakistan has been a tumultuous journey marked by delays, challenges, and geopolitical tensions. As stakeholders continue to navigate through obstacles, the future of the project remains uncertain. However, with persistent efforts and strategic resolutions, there is hope for the successful realization of enhanced gas supply infrastructure in the country.