Following the federal government’s overall plan, progress has been made on the Pakistan-Russia North-South Gas Pipeline project. Russia and Pakistan have agreed to work together to build the Pakistan Stream Gas Pipeline. This project will deliver gas from Karachi to Kasur.
According to the Pakistan Embassy in Russia, a protocol on amendments to the Agreement on North-South Gas Pipeline Project was signed by Pakistan’s Ambassador in Moscow Shafqat Ali Khan and Russian Minister for Energy Nikolay Shulginov. The negotiations proved to be successful.
Pakistan to Hold Majority Stake in the Project
Pakistani officials have put the project’s cost at $2.25 billion, although the Russian side has yet to finalise the details. A senior official from the Energy Ministry told The News that the cost will be determined later after the extent of the project is determined. “Under the new IGA, Pakistan will hold a majority stake in the 1,122-kilometer pipeline. That will go from Karachi (Port Qasim) to Kasur, with 74 per cent ownership (Punjab). Whereas, Russia will own 26 per cent of the company.”
Moreover, according to the protocol, the project has been renamed “Pakistan Stream Gas Pipeline”. Additionally, the concerned parties have changed the project’s partnership structure. This is to avoid US sanctions against Russian businesses,
High-Profile Strategic Partnership
The Pakistan Stream Gas Pipeline (SPV) would be operational within 60 days after the signing of the agreement. The pipeline project is a high-profile strategic partnership between Pakistan and Russia that will boost bilateral ties.
Furthermore, the 1,100-km project plans to carry 12.4 billion cubic metres of natural gas annually. Pakistan and Russia signed an intergovernmental agreement on the North-South Gas Pipeline in 2015. This was to strengthen bilateral cooperation in the hydrocarbon industry. However, the energy project has faced a setback. This is due to the failure of carrying out decisions.
Lastly, according to the ministry, both countries’ enterprises will soon begin to implement the project, which would contribute to Pakistan’s energy security.