NewslinesWorldPakistan, Russian Federation ink $2 billion gas pipeline deal

Pakistan and Russian Federation signed an agreement on Friday to build a gas pipeline stretching hundreds of kilometres from Karachi on the Arabian Sea to the eastern city of Lahore.

The project will be capable of transporting 1.2 billion cubic feet of gas from Karachi to Lahore by laying 42 inch diametre pipeline.

Since the Pakistan Muslim League-Nawaz (PML-N) government came into power in May 2013, one of the major initiatives it took was its paradigm shift in Pakistan’s foreign policy.

The official said that Russia was not only interested in down stream oil/gas sector of Pakistan but also entering in upstream oil/gas sector of the country, as recently Russian Exploration and Production (E&P) companies had entered into agreements with Pakistani companies.

The Pakistani civil and military leadership’s visits to Russian Federation and Central Asian nations have become a routine matter now.

Minister for Petroleum Shahid Khaqan Abbasi told that the project was of great significance for Pakistan as it will help carry the additional volume of imported gas from the country’s South to rest of the country.

First step of project will complete in last month of 2017.

In December 2014, RT Global Resources, a subsidiary of Russia’s state technologies corporation Rostec, and the Pakistani Inter State Gas System (ISGS) announced a project to build oil and gas infrastructure in Pakistan. The pipeline will be owned and operated by the project company for 25 years.

Pakistan Russia ink agreement to build Karachi Lahore gas pipeline