20000324

UNOCAL trying

to re-enter

Turkman gas pipeline

project

ASHRAF KHAN

KARACHI: UNOCAL is trying to again jump into the Turkmenistan gas pipeline project it had quit about a year ago on account of alleged gross abuse of human rights in Afghanistan.

The US company is in dialogue with the Afghan authorities seeking guaranteed protection for its personnel while working on the Afghani terrain, reliable sources told Business Recorder. This is an interesting manoeuvre on the part of the company since Afghanistan has been under severe US sanctions for being a patron of terrorists.

About a year ago, UNOCAL had left the consortium- Centgas- it was leading, on the ground that the Afghan government was not honouring human rights. Pakistan and Turkmenistan governments have since been looking for a consortium leader. As of now, Delta Oil Company of Saudi Arabia, Hyundai of Korea, Itochu Corp, of Japan, Indonesia Petroleum and Crescent Steel and Allied Products comprise the consortium.

The project saw no progress in the absence of a consortium leader of international standing. Nevertheless, the project got a new lease of life during a recent visit of Turkmenistan's foreign minister to Pakistan.

The 1400 km gas pipeline is to be laid from Turkmenistan's Daulatabad Gas Field to Pakistan at an estimated cost of two billion dollars.

UNOCAL had come under criticism in the US media when it continued its energy projects in Maynamar despite the US government sanctions imposed on the country after the ruling party banned the opposition leaders from commuting within their own country.

The long term economic attractions have been so strong of these gas pipeline projects that no multinational can help taking risks, an observer said. On the condition of anonymity, he said that in the coming years it would be of 'decisive importance, if an infrastructural link-up is established in the form of a network between South East Asia, South Asia and Central Asia. In this connection a key role is to be played by Pakistan as railroads, oil and gas pipelines to India and to ports of the Arabian Sea (Karachi and Gwadar), must pass through its territory. At the same time, this is a big and perhaps the 'only' chance of development for Pakistan, he remarked.

Recently, the Pakistan cabinet, after five long years of hesitancy has agreed in principle to allow gas pipeline from Iran to India through Pakistani territory. All the three potential gas suppliers- Turkmeniitan, Iran and Qatar, have been keen to stretch their pipelines upto India.