Qatar, Pakistan reaffirm strong support to Gusa venture

The ambitious Gulf South Asia (Gusa) gas pipeline project from Qatar to Pakistan took a big step towards implementation yesterday, with both governments reaffirming their continued strong support to the venture.

The project is expected to entail an estimated $3 billion outlay in the construction of the downstream facilities.

A meeting in Doha yesterday between Abdullah bin Hamad Al Attiyah, Qatar's Minister of Energy; and Usman Aminuddin, Pakistan's Minister for Petroleum and Natural Reserves, resulted in a decision to set up a tripartite joint commission involving the two governments and project sponsor Crescent Petroleum, well-informed sources in Qatar stated yesterday.

The panel will hold regular meetings in Doha, Islamabad and Sharjah, in the lead-up to Qatar signing a development fiscal agreement (DFA), and Pakistan in its turn inking a gas supply agreement (GSA), they explained.

They expected the deals to be signed within months.

"We have been very patient, and will continue to be very patient, as we want the Gusa gas pipeline project to be implemented," Al Attiyah reiterated.

"We are not competing with any other pipeline in the area, but want to secure our market," he explained.

Aminuddin asserted project financing would not prove a constraint: "Pakistan already spends $1.3 billion on substitutable fuel oil imports annually, which can readily be replaced by cheaper, environment-friendly gas. Hence payment is not an issue," he pointed out.

The two ministers were earlier given a detailed presentation on the proposed Gusa gas pipeline by Hamid Jafar, chairman, Crescent. Senior representatives from Qatar Petroleum and the Pakistan Government attended.

The 1,600-kilometre pipeline charts a course that runs both onshore and offshore. Actual project implementation is expected to take three years.

The sources added that once Qatar and Pakistan sign the deal, an international consortium will be put into place for executing the project. Several multinationals have already evinced keen interest in participating.