Crescent Petroleum completes studies for Qatar-to-Pakistan pipeline

By an OGJ Online Correspondent

ABU DHABI, Jan. 11 -- Sharjah-based Crescent Petroleum Co. International Ltd. has completed feasibility and engineering studies for the proposed $3 billion Qatar-to-Pakistan offshore gas pipeline, said the Organization of Petroleum Exporting Countries' news agency Friday.

Pakistan and Crescent signed a memorandum of understanding for the 1.6 bcfd Gulf South Asia project almost 2 years ago. Gas for the pipeline could come from TotalFinaElf SA's LNG interests in Qatar (OGJ Online, July 26, 2000).

The pipeline route reportedly would be mainly offshore in Iranian waters. It would extend from Ras Laffan through Hamriyah, then Dibba on the Gulf of Oman, terminating at Gadani, Pakistan. The section between Hamriyah and Dibba would be onshore. The project has been in discussions since 1991 and the competing Dolphin project has made much progress.

Obaid bin Saif al-Nasseri, minister of petroleum and mineral resources of the United Arab Emirates, assured the visiting Pakistani minister that a delegation from the UAE would be sent to Pakistan soon to study investment opportunities in the energy sector.

"We are talking to Qatar on the proposed GUSA pipeline. Both governments are supporting the project, which is likely to be partly subsea and partly onshore. We are confident the project will make headway," said Usman Amin Uddin, Pakistani petroleum minister.

Investment in the project would be met by a consortium from the private sector, he noted, stressing that foreign investment in Pakistan had not stopped because of tensions in the region.

Pakistan's gas reserves are 282 tcf and its oil reserves are 27 billion bbl, but resource constraints have impeded the development of these sectors. Amin Uddin said demand for gas in Pakistan was growing at 5-6%/year, and consumption of 2.5 bcfd is met internally.