Pakistan's Pipeline Options: Turkmenistan Versus Iran

by Naveed Ahmad (03/20/2013 issue of the CACi Analyst)

Facing depleting petro-chemical reserves and soaring demands for energy, Pakistan has tough choices to make. It can either risk punitive action by opting for a steady supply of Iranian gas or rely on the more vulnerable but U.S.-backed 1,700 kilometer Turkmenistan-Afghanistan-Pakistan pipeline. Political instability and a lack of a long-term vision over the past two decades have impeded the evolution of both pipeline options, as well as inland and offshore exploration. With a modest forecast of an economic growth rate of 5.5 percent, Pakistan’s energy demand in 2030 may soar to 361.31 Million Tons of Oil Equivalent (MTOE), causing a deficit of 141 MTOE. Hence, Pakistan is increasingly facing an energy emergency.