Moscow, May 28 - Neftegaz.RU. Russian Energy Minister Nikolay Shulginov and Pakistan s ambassador in Russia Shafqat Ali Khan signed the amended Inter-Governmental Agreement for the flagship project of North-South Gas Pipeline (NSGPP).
The PSGP project will deliver gas from coastal regions to industrial areas in the north and will boost Pakistan’s capacity to internally transport imported LNG.
The 1,100 km-long pipeline will have a capacity to pump 12.4 billion m3 of gas annually.
The 1,100 km-long pipeline will have a capacity to pump 12.4 billion m3 of gas annually.
3/4 As per the Protocol the Project has been renamed as "Pakistan Stream Gas Pipeline". The pipeline will run from Karachi to Kasur for transportation of gas. The Project is a flagship strategic venture between Pakistan and Russia and will strengthen bilateral cooperation. pic.twitter.com/r2sUYGLVD2
— Pakistan Embassy Russia (@PakinRussia) May 28, 2021
The cost of the project has been estimated at $2.25 billion by Pakistani officials, which is not yet finalised by the Russian side.
Under the revised agreement:
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Pakistan will own 74 % stakes in the pipeline
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Russia 26 %
Pakistan Stream was also a main topic of discussion during Russian foreign minister Sergey Lavrov’s 2-day trip to Islamabad in April.
Lavrov noted, that Russian companies are also ready to participate in the modernization of the energy sector and the railroad system of Pakistan.
Pakistan is a highly gas deficit country.
The local gas production has drastically dwindled to 3.2 bcfd from 4.2 bcfd and to meet the increasing deficit of 2.5 bcfd, the country is importing LNG of 1-1.2 bcfd, depending upon the needs of the country.
In the winter season, the country's demand increases manifold up to over 6 bcfd, which is not being met by local gas and imported LNG.
To read the news in Russian
Author: Anna Ignatjeva
