CCoE directs work on Pakistan Russia Gas Pipeline

Aftab Ahmed

Islamabad: The Cabinet Committee on Energy (CCoE) has directed the Petroleum Division to expedite the work on Pakistan Russia gas pipeline-North South Gas Pipeline Project.

Pakistan and Russia are working on North-South Gas Pipeline Project to transport gas from Karachi to Lahore.

Two sides signed Inter-governmental Agreement in 2015. However, the project suffered a delay due to sanctions the US had imposed on Russian companies.

Now, Pakistan and Russian have signed a revised Intergovernmental agreement due to revision in the structure of the gas pipeline project.

Under the new model, Pakistan will invest 74 percent whereas Russia will invest 26 percent on this project. However, Russian companies will have management control in this project.

Pakistani companies-SNGPL and SSGCL will also become part of this project. At present, two LNG terminals are operational. Two private parties are setting up two more LNG terminals in Pakistan.

Ministry of Maritime Affairs presented progress of the case for information to cabinet committee on energy in a recent meeting. The Ministry of Maritime Affairs had complete actions on its part.

SAPM on Power and Petroleum Tabish Gauhar stated that the allocation of pipeline capacity to new LNG Terminals is the main issue due to the low existing pipeline capacity. Officials informed the cabinet body on energy that OGRA was already in the process of finalization of allocation of pipeline capacity.

The chair observed that while the issue of pipeline capacity was inter-linked with North-South Gas Pipeline. He noted the project was suffering a delay for a considerable time, whereas the cabinet had already approved with a specific timeline.

Therefore, there was a need to expedite the finalization of the said project also. He also advised Cabinet Division to keep track of the decision with specific timelines in order to flag them before the house sensitizing the line Ministries/Divisions for timely action.

The Cabinet Committee on Energy (CCoE) considered the summary submitted by the Ministry of Maritime Affairs dated 18h May 2021 regarding ‘Update on the progress of Establishment of New LNG Terminals’ and directed Petroleum Division to expedite action on North-South Gas Pipeline Project.