KARACHI: US energy giant ExxonMobil has pulled out of a deal with Pakistani consortium Energas for the construction of a liquefied natural gas (LNG) import terminal near Karachi, officials of both business entities confirmed while talking to Arab News on Wednesday.
“This is part of our ongoing review to find further efficiencies and strengthen the company for the future,” ExxonMobil spokesperson Alvin Foo said in an email from Singapore. “The decision does not impact our Downstream and Chemical business in Pakistan, and future investment opportunities in Pakistan will be evaluated,” he added.
In 2018, ExxonMobil had signed an agreement with Energas to support the development of Pakistan’s third LNG import terminal. According to the document, the construction work had to be carried out at Port Qasim at an estimated cost of $150 million, and the facility had to be built to accommodate 750 million cubic feet per day (mmcfd) or about 5.6 million tons LNG per year.
At present, Pakistan has two LNG terminals that handle imported gas for domestic consumption. The combined capacity of these terminals is 1.2 billion cubic feet per day.
The Pakistani consortium has a combined balance sheet of $5.7 billion and an annual turnover of $3.2 billion, along with investments in power generation projects in the country with a capacity of 2,000 megawatts.
While acknowledging the technical support provided by ExxonMobil, Energas officials said the American company’s exit would not have a major impact since it had no equity stakes in the project. They added that all regulatory approvals and licenses had already been obtained and the construction of the terminal was likely to start within the next two months.
In May 2018, ExxonMobil acquired 25 percent stakes in offshore drilling in Pakistan at Kekra-1 near the Pakistan-Iran border. Other consortium partners were Government Holdings Private Limited, Pakistan Petroleum, Italian exploration giant ENI and the Oil and Gas Development Corporation (OGDC) of Pakistan. While it was initially said that the site had bigger reserves than those in Kuwait, the project was abandoned last year when the government announced that nothing had been found.
Although the ExxonMobil spokesperson did not comment on the impact of Kekra-1 drilling failure, he said that his company was looking at measures to reduce expenses arising out of market conditions and price reductions.
“ExxonMobil is evaluating all appropriate steps to significantly reduce capital and operating expenses in the near term as a result of market conditions and commodity price decreases,” Foo said.
US-based experts say ExxonMobil has slashed its budget after suffering financial losses amid the coronavirus pandemic.
“ExxonMobil has reduced its capital budget. They are in the shale gas business here and suffered substantial losses due to price decline,” Masood Abdali, an energy expert, told Arab News from Texas. “Also, their business was not going well globally.”
Abdali, who previously served as business development manager of Weatherford in Saudi Arabia and Bahrain, believes that Pakistan’s market is difficult since it is risky for foreign companies.
“Pakistan’s market is very difficult and the risk is very high. Therefore, the operating cost remains high for foreign companies,” he said.
ExxonMobil pulls out of deal to construct LNG terminal at Pakistan's Port Qasim
https://arab.news/rvvtz
ExxonMobil pulls out of deal to construct LNG terminal at Pakistan's Port Qasim
- The spokesperson of the US energy company says exit won’t impact its downstream and chemical business in the country
- ExxonMobil had signed an agreement with Energas in 2018 to support the development of Pakistan’s third LNG import terminal
Pakistan says will not renegotiate Indus Waters Treaty with India, vows to defend rights
- India suspended the key water-sharing treaty after an attack in Indian-administered Kashmir that New Delhi has blamed on Pakistan
- Pakistan has denied involvement in the attack that killed 26 tourists and described India’s suspension of the treaty as an ‘act of war’
ISLAMABAD: Pakistan will not renegotiate the Indus Waters Treaty (IWT), brokered by the World Bank, with India, Pakistani Information Minister Attaullah Tarar said on Sunday, following India’s suspension of the 1960 agreement that regulates water-sharing from the Indus River and its tributaries.
Pakistan has rights to the western rivers— Indus, Jhelum, and Chenab— for irrigation, drinking, and non-consumptive uses like hydropower, according to the Indus Waters Treaty. India controls the eastern rivers— Ravi, Beas, and Sutlej— for unrestricted use but must not significantly alter their flow. India can use the western rivers for limited purposes such as power generation and irrigation, without storing or diverting large volumes.
Relations between the neighbors have deteriorated amid heightened tensions over an attack in Indian-administered Kashmir’s Pahalgam resort town that killed 26 tourists on April 22. New Delhi has accused Islamabad of involvement in the attack. Pakistan has denied any involvement and has expressed its willingness to participate in a “credible and transparent” international investigation into the attack.
Both sides have since announced a series of punitive measures against each other, with India suspending the Indus Waters Treaty. Pakistan has described the suspension an “act of war,” vowing to defend its water rights. There are also mounting fears that India may carry out limited airstrikes or special forces raids near the border with Pakistan, raising concerns that the nuclear-armed rivals may once again come close to an all-out war.
“I do not believe so,” Tarar said, when asked by foreign media journalists whether Pakistan will accept India’s long-term demand of renegotiating the IWT.
“If ever there is reconsideration of terms, which I don’t see happening anytime in the near future, then I think India will lose out and Pakistan will benefit,” he said, adding that Pakistan, being the lower riparian, had more rights and was entitled to more water.
The top Pakistani leadership has clearly stated that if the country’s water is stopped or diverted, it will respond with “full force,” according to Tarar. Pakistan is prepared to fight and defend its water rights at every forum.
“It does not mean that we are seeking an arbitration, I think that we have always been very active and our legal team works on future prospects as well, if faced with any situation,” he said.
The minister denied any back-channel contacts between the two nuclear-armed neighbors to ease the situation at the moment.
The two neighbors have fought three wars, including two of them on the disputed region of Kashmir, since their independence from British rule in 1947. Both rule the Himalayan territory in part but claim it in full.
“At this point in time, there is no contact. There is no back channel [talks with India],” he said.
Tarar said the international community had not responded to New Delhi’s claims about the Pahalgam attack, according to India’s hopes, which was a “diplomatic success” of Pakistan.
“The international community believes in Pakistan, believes in the effort that Pakistan has made in the war against terror,” he said.
“Diplomatically, I consider statements from the world leaders as Pakistan’s successes as India was expecting a lot from the rest of the world by playing victim, but you cannot play victim without having evidence in your support.”
The minister said India had “built a false narrative on a completely baseless premise” in order to divert Pakistan’s attention from the western border with Afghanistan where it has been successfully fighting militancy.
“But we will continue to fight the war against terrorism and will continue to protect the world, the citizens of the world,” he said.
Tarar said the reason Pakistan had called for an independent, impartial, and transparent inquiry into the Pahalgam attack was because its “hands are clean,” accusing India of supporting extremism and encouraging attacks on Pakistani missions abroad.
“Their extremist ideology, through which they are encouraging their people to attack our foreign missions, has led to very unfortunate incidents,” he said.
“In London, our high commissioner was attacked twice, and stones were pelted [at the Pakistani high commission]. Let me reiterate, they shouldn’t attack our space, our world, our people as Pakistan has always defended itself.”
Pakistan kills 54 militants backed by ‘foreign masters’ amid soaring tensions with India — military
- Tensions between Pakistan and India have soared over a militant attack in Indian-administered Kashmir that killed 26 tourists this week
- Both nations have unleashed a raft of measures against each other after India blamed the attack on Pakistan, an allegation Islamabad denied
ISLAMABAD: Pakistan’s security forces have killed 54 militants, backed by “foreign masters,” who were attempting to infiltrate the country’s border with Afghanistan in the northwestern Khyber Pakhtunkhwa (KP) province, the Pakistani military said on Sunday, amid heightened tensions with India.
The Pakistani military said intelligence reports indicated that the group of ‘Fitna al Khwarij,’ a term used by Islamabad to describe Pakistani Taliban militants, was specifically infiltrating at the behest of their “foreign masters” to undertake “high-profile terrorist activities inside Pakistan.” The ISPR statement was a reference to India and came at a time of soaring tensions between Islamabad and New Delhi over a militant attack in Indian-administered Kashmir that killed 26 tourists this week.
New Delhi blamed the April 22 attack on Pakistan, an allegation denied by Islamabad. Both nations have since unleashed a raft of measures against each other, with Pakistan closing its airspace to Indian airlines and India suspending the 1960 Indus Waters Treaty that regulates water-sharing from the Indus River and its tributaries.
This is the highest ever number of Pakistani Taliban militants killed in a single engagement and the Pakistani security forces prevented a “potential catastrophe” by demonstrating exceptional vigilance and preparedness, according to the Inter-Services Public Relations (ISPR), the Pakistani military’s media wing. Pakistani forces also seized a sizeable cache of weapons, ammunition and explosives from the site of the encounter in the North Waziristan district.
“Such actions by Fitna al Khwarij (FAK), at a time when India is leveling baseless accusations against Pakistan, clearly implies on whose cues FAK is operating,” it said.
“The recent [meeting of] NSC (National Security Committee) also underscored the fact that distracting Pakistan’s security forces from their focus on the war against terror seems to be the strategic intent of India to allow a breathing space to FAK which is reeling from the onslaught of our Armed Forces resolute offensive against them.”
There was no immediate response to the Pakistani military’s statement by New Delhi.
Pakistan has struggled to contain surging militancy in KP in recent years, where the Pakistani Taliban have mounted their attacks against security forces and police since their fragile, months-long truce with Islamabad broke down in late 2022. Islamabad has variously accused Afghanistan and India of supporting the Pakistani Taliban and other militant groups, an allegation denied by Kabul and New Delhi.
Pakistan says the Taliban’s takeover of Kabul has emboldened the Pakistani Taliban, which is a separate group but seen by Islamabad as an ally of the Taliban authorities in Afghanistan. Kabul denies the allegations and insists Pakistan’s security is an internal matter of Islamabad.
Prime Minister Shehbaz Sharif praised the Pakistani security forces for their timely action and professionalism in preventing the militants from entering the country.
“These successful operations indicate that Pakistan is winning the war on terror and achieving significant successes against terrorists,” he said.
Saudi delegation arrives in Pakistan to review Makkah Route Initiative arrangements
- Makkah Route Initiative allows pilgrims to complete immigration processes at departure airports
- A total of 100 flights from Islamabad, 80 flights from Karachi will operate under the initiative
ISLAMABAD: A 45-member Saudi delegation arrived in Islamabad on Sunday to review arrangements for the Makkah Route Initiative, the religion ministry said, as Pakistan gears up for Hajj 2025.
The Makkah Route Initiative is designed to streamline immigration processes by enabling pilgrims to complete official travel formalities at their departure airports. Initially tested in Islamabad in 2019, the program was later expanded to Karachi, benefitting tens of thousands of Pakistani travelers.
The annual pilgrimage is expected to take place in June, with nearly 90,000 Pakistanis expected to travel to Saudi Arabia under the government scheme while 23,620 Pakistanis will perform Hajj through private tour operators this year.
“A 45-member delegation has arrived in Pakistan to review arrangements for the Road to Makkah project,” the religious affairs ministry said in a statement.
Saudi immigration officials, designated for Karachi’s Jinnah International Airport, were warmly welcomed by the airport management team upon arrival in the southern port city, the Pakistan Airports Authority said.
“Under the Road to Makkah initiative, the Saudi immigration team will carry out Saudi immigration clearance for Hajj pilgrims at eight dedicated counters at Jinnah International Airport, starting 29 April, coinciding with the departure of first Hajj flight from Karachi,” it said in a statement.
“This initiative will streamline the pilgrims’ entry process into Saudi Arabia by completing immigration formalities before departure from Pakistan.”
Under the Road to Makkah project, immigration for Pakistani pilgrims will be completed in Pakistan instead of Saudi Arabia.
Around 50,500 Pakistani pilgrims will travel to Saudi Arabia under the Makkah Route Initiative, according to the Pakistani religion ministry. Of these, 28,000 pilgrims will depart for the Kingdom from Islamabad while the remaining 22,500 will leave from the southern port city of Karachi.
“A total of 100 flights from Islamabad and 80 flights from Karachi will operate under the Road to Makkah project,” the statement said.
Pakistan will launch Hajj flight operations on Apr. 29, with the first flight departing from the eastern city of Lahore.
While a precise number of pilgrims for Hajj 2025 is difficult to determine in advance, projections suggest it will be a record-breaking year, with over 2.5 million pilgrims expected.
Pakistan reaches out to regional allies as crisis deepens with India over militant attack
- Foreign Minister Ishaq Dar speaks to counterparts in China, Saudi Arabia, Egypt, PM contacts Iranian President
- Ties have plunged since New Delhi accused Islamabad of being behind latest attack in Indian-administered Kashmir
ISLAMABAD: Pakistani top leaders have reached out to senior government officials in China, Saudi Arabia, Iran and Egypt this week as tensions with New Delhi have sharply escalated over a deadly militant attack in Indian-administered Kashmir.
Relations between the neighbors have plunged to their lowest level for years, at least since 2019, as Delhi accused Islamabad of involvement in the latest attack in a scenic tourist area of Indian-administered Kashmir on Tuesday in which 26 tourists were killed. Pakistan has denied involvement and says it is ready to take part in a credible and transparent investigation.
Both sides have announced a flurry of punitive measures to downgrade ties, with India suspending a key water-sharing treaty and Pakistan closing its airspace to Indian planes. There are also mounting fears of India carrying out limited airstrikes or special forces raids close to the border with Pakistan, which would push the nuclear-armed rivals closer toward an all-out war.
Against this background, Pakistan’s Deputy Prime Minister (DPM) and Foreign Minister (FM) Ishaq Dar on Saturday engaged with his counterparts from Egypt, Turkiye and Saudi Arabia to rally diplomatic support.
“DPM/FM briefed FM Wang Yi on the current regional situation,” a statement from Pakistan’s foreign ministry said after Dar spoke to his Chinese counterpart. “He categorically rejected India’s unilateral and illegal actions, as well as its baseless propaganda against Pakistan.”
The statement said both diplomats reiterated their resolve to uphold regional peace and stability, promote mutual respect, and jointly oppose “unilateralism and hegemonic policies.”
“They agreed to maintain close communication and coordination at all levels to advance their shared objectives of peace, security, and sustainable development in the region and beyond,” the foreign office said.
Dar had similar conversations with his counterparts from Saudi Arabia, Egypt and Turkiye on Saturday.
Prime Minister Shehbaz Sharif also spoke to Iranian President Masoud Pezeshkian on Saturday, saying he would welcome any efforts by Tehran to promote peace between Islamabad and New Delhi.
According to the latest report in The New York Times, Indian Prime Minister Narendra Modi has reached out to over a dozen world leaders while diplomats from 100 missions in New Delhi have been called for briefings.
However, the report said India is not rallying the international community for help to de-escalate tensions with Pakistan.
“Instead, according to four diplomatic officials aware of the discussions, New Delhi appears to be building a case for military action against its neighbor and archenemy,” the report said.
After the Pahalgam attack, New Delhi suspended the 1960 Indus Waters Treaty with Pakistan unilaterally, recalled defense staff, announced the closure of the main land Attari-Wagah border crossing with Pakistan, downgraded diplomatic ties and withdrew special visas for Pakistani nationals.
In response, Islamabad ordered the expulsion of Indian diplomats and military advisers, canceled visas for Indian nationals, with the exception of Sikh pilgrims, and also announced it was closing the main border crossing from its side.
Pakistan has said any attempt by India to stop the supply of water from the Indus River would be seen as an “act of war” and replied with the “full force of national power.”
According to international news agency AFP, troops from Pakistan and India exchanged fire in disputed Kashmir for a third night in a row on Saturday.
Kashmir has been disputed between India and Pakistan since independence from British rule in 1947. Both rule it in part but claim it in full and have fought two wars over the Himalayan territory.
Pakistan says tensions with India escalating into nuclear conflict a ‘far-fetched analysis’
- Defense Minister Khawaja Asif says presence of nuclear weapons guarantees India won’t commit any “irresponsible” adventure
- Tensions between India and Pakistan have spiked after Apr. 22 attack in Indian-administered Kashmir that killed 26 tourists
ISLAMABAD: Defense Minister Khawaja Asif said this week that the possibility of Pakistan’s tensions with India escalating into a nuclear conflict is a “far-fetched analysis,” saying that both countries are aware of the consequences of such a scenario.
Tensions between the nuclear-armed neighbors spiked this week after gunmen killed 26 tourists in Indian-administered Kashmir on Apr. 22. New Delhi blamed Islamabad for being involved in the attack and downgraded ties with Pakistan. Islamabad denies New Delhi’s allegations.
Troops from both sides have traded fire along the disputed Kashmir territory for three nights in a row, raising fears of an all-out war breaking out between the two nations who both possess nuclear weapons.
When asked about the possibility of a “nuclear standoff” between the two countries, Asif told Russia Today channel on Saturday:
“I don’t think so, that’s a very far-fetched analysis that this will ultimately result in a nuclear conflict. I don’t think so, the countries know the consequences of a nuclear conflict.”
The minister said that the presence of nuclear weapons guarantees Pakistan that India will not escalate military tensions.
“Knowing that we are nuclear powers gives us some sort of security against an irresponsible adventure by India,” he said, describing it as the “only hostile country around us.”
Asif said Pakistan’s Prime Minister Shehbaz Sharif has offered cooperation to India in holding an international inquiry with the support of several countries into the attack that triggered tensions between the two countries.
“We are ready to welcome any commission or committee formed to investigate this incident,” the minister said.
Asif condemned India’s move to release additional flow of water into Pakistan on Saturday, which prompted the government in Pakistan-administered Kashmir to warn residents about potential flooding in its river Jhelum.
The Jhelum river flows from Indian-administered Kashmir into Azad Kashmir and then Pakistan’s Punjab province. India had announced this week it was suspending the decades-old Indus Waters Treaty, which regulates the flow of the six rivers of the Indus Basin between the two nations.
Suspension of the treaty means India can stop sharing crucial information and data on the release of water from barrages/dams or on flooding.
“I would call it water terrorism,” he said. “Without any warning. So low-lying areas in Pakistan would be flooded, there will be destruction of crops, there will be destruction of populated areas,” he added.
As per the Indus Waters Treaty, Pakistan has rights to the western rivers— Indus, Jhelum, and Chenab— for irrigation, drinking, and non-consumptive uses like hydropower. India controls the eastern rivers— Ravi, Beas, and Sutlej— for unrestricted use but must not significantly alter their flow.
India can use the western rivers for limited purposes such as power generation and irrigation, without storing or diverting large volumes. Experts, like Hassaan F. Khan from Tufts University, argue that India lacks the infrastructure to divert large amounts of Indus waters.
Prime Minister Shehbaz Sharif on Saturday warned attempts to reduce or divert the flow of water belonging to Pakistan under the Indus Waters Treaty would be “responded to with full force.”
