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Current affairs forms an important component of several competitive exams such as the UPSC Civil Services Examination, SSC CGL, Bank PO & PSU entrance tests, etc. Therefore, understanding terms/concepts/events that are in the news is critical for aspirants. We at PaGaLGuY bring you this series of articles in which we shall explain some of these important concepts/events for you.
In this article we are discussing the China’s new project regarding the building of new energy pipeline through CPEC region.The China Petroleum Pipeline Bureau is expected to build a 700 km long energy pipeline from the western Pakistani port of Gwadar to Nawabshah, which is its major gas distribution centre in the Sindh province. China is the biggest buyer of Iranian oil. So, the country is also looking forward to extend the energy partnership with Iran immediately after the latter agreed to reduce its nuclear activities and signed the nuclear framework agreement in Switzerland earlier this year. This agreement was rewarded with a promise to lift sanctions that have hitherto obstructed growth in Iran.
The new pipeline will bring gas from Iran to the China-Pakistan Economic Corridor (CPEC). CPEC is a development mega-project which aims to connect Gwadar Port in southwestern Pakistan to China’s northwestern region of Xinjiang, via a network of highways, railways and pipelines to transport oil and gas.
The pipeline will supply Pakistan with enough gas to fuel 4,500 megawatts of electricity that is almost as much as the entire country’s current electricity shortfall. This pipeline will provide Iran a market in the east for its gas.
In 1995, the major project of Iran-Pakistan-India gas pipeline (IPI) was bound to happen. However, it was was strongly opposed by the US, while supported by Russia and China. India also pulled-out of ‘peace pipeline’ in 2009 due to its civilian nuclear deal with the United States. Later the Iran-Pakistan pipeline (IP) project did not get exemption due to the sanctions on Iran. Due to US pressure on Pakistan, the IP project was not fruitful. The alternative project that the US favoured for Pakistan is the proposed Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline. TAPI is a natural gas pipeline being developed by the Asian Development Bank. It will transport Caspian Sea natural gas from Turkmenistan through Afghanistan into Pakistan and then to India.
Thus, this energy source will bring major changes in the CPEC region that eventually will have several, dynamic strategic consequences.