New Delhi, September 6
India today offered to supply diesel to Pakistan by laying a pipeline from Jalandhar to Lahore and in assisting Islamabad in setting up CNG
infrastructure. Pakistan is currently importing diesel from Kuwait.
The proposal came up when Pakistan’s Foreign Minister Khursheed M. Kasuri met India’s Petroleum Minister Mani Shankar Aiyar over lunch and discussed various issues.
“We had a very useful and friendly exchange. Petroleum Ministers (of the two countries) will discuss all the modalities (of the proposals brought out today). I think it should not be long,” Mr Kasuri said.
Mr Aiyar said India proposed to export at least 1.5 million tonnes of diesel to Pakistan’s Punjab province, which currently imports the fuel from Kuwait and other Middle East countries through Karachi port.
“We are in a position to give them diesel. If they want a larger quantity (at least 1.5 million tonnes a year), a pipeline from Panipat (where IOC has a refinery) to Jalandhar could be extended to Lahore. If the requirement is even larger, a pipeline can be laid from Jamnagar in Gujarat (the site for Reliance Industries’ gigantic refinery),” Mr Aiyar said.
New Delhi also offered Islamabad assistance in setting up city gas distribution network and Compressed Natural Gas retail system for use of CNG in running automobiles.
Besides, Mr Aiyar also proposed Indian firms retailing fuel and exploring for oil and gas in Pakistan. Indian oil firms, Mr Aiyar said, had set a mark in Sri Lanka and Mauritius and the same could be replicated in Pakistan.
The Pakistan Foreign Minister was also given a brief presentation of oil and gas exploration activities of ONGC Videsh Ltd and a proposal made out that Indian firms be allowed to explore for oil and gas in Pakistan.
“As I said I flagged off these issues. Detailed discussions would be held when I meet the Pakistani Petroleum Minister,” he said.
Mr Aiyar said Pakistan imported about 3 million tonnes of diesel a year at Karachi port, half of which went in meeting the requirement of Punjab province. This 1.5 million tonnes can be supplied by Indian Oil Corporation, which would help Pakistan save on transportation cost.
He also raised the issue of export of petrochemicals from India to Pakistan. “We will work out the details when I meet the Petroleum Minister of Pakistan,” he said but did not give any timeframe in which the two ministers would meet.
For diesel exports from India to take place, Pakistan will have to remove import of the fuel from its negative list and put diesel on Open General Licence (OGL). Currently there is a ban on import of fuel from India.
