Pakistan, Russia sign revised deal on gas pipeline
Pakistan and Russia on Friday signed a revised Inter-Governmental Agreement (IGA) to kick off construction work on the North-South Gas Pipeline project.
Pakistan and Russia had signed IGA in 2015 to execute a gas pipeline project but they could not kick off construction work due to US sanctions on Russian firms.
They had now revised a deal that allows the former to have 74 percent shareholding in the gas pipeline project.
However, Russia will have 26 percent shareholding in this project.
Pakistan and Russia will form a joint venture company that would be responsible for executing the gas pipeline project.
The JV will execute a gas Pipeline from Karachi to Lahore to transport LNG.
Country has two LNG terminals with 1.2 billion cubic feet per day (bcfd) LNG import handling capacity. Private companies are also working to build two more LNG terminals in Pakistan.
Pakistan’s Ambassador to Russian Federation, Mr. Shafqat Ali Khan signed the Protocol to the Inter-Governmental Agreement IGA on Friday along with HE Nikolai Shulginov, Minister for Energy, Russian Federation in Moscow.
Pakistan and Russia have updated the IGA as a Protocol to reflect the utilization of GIDC and continued partnership with Russia to build the gas project. This has happened after successful negotiations Pakistan’s Ministry of Energy (Petroleum Division) and Russian Ministry of Energy have conducted.
They will set up Pakistan Stream Gas Pipeline SPV within 60 days of this signing, to implement the project.
Two sides had signed Pakistan Russia Inter-Governmental Agreement (IGA) on the North-South Gas Pipeline in 2015 but they could not implement it due to US sanctions against Russian firms.
The Project has been delayed since 2015 years with no headway. Now two countries have renamed the project as Pakistan Stream Gas Pipeline Project.
It is a Flagship Pakistan Russian energy project which will enhance bilateral cooperation in the hydrocarbon sector between both countries and huge technological uplift and employment opportunities to local companies in Pakistan.
