Russia has agreed with Pakistan to build a large gas pipeline connecting the southern port of Pakistan to the northern industrial hub. The agreement will be the largest between Moscow and Islamabad since 1970.
Russia’s Energy Minister Nikolai Schulinov and Pakistani Ambassador Shafqat Ali Khan signed a revised agreement on the project in Moscow on Friday, paving the way for construction to begin in the near future.
The Pakistan Stream is estimated to have a discharge capacity of 12.3 billion cubic meters of natural gas per year in the 1,100-kilometer pipeline, according to the energy ministry.
The pipeline will connect fast natural gas terminals to Karachi and another port city, Gwadar, and includes the industrial hub of Punjab and the city of Lahore in northern Pakistan.
Both nations “A big effort” Shalginov, preparing to amend the agreement SaidAdditionally, the signing of the agreement will allow them to start construction “As soon as possible.” There will be an agreement “Help Pakistan strengthen its energy security and increase its dependence on natural gas as an environmentally friendly energy source.” Minister pair.
Last year, a Pakistani official told Bloomberg that construction could begin as soon as possible, but Russian officials have not yet confirmed the information. According to Pakistani media, the २ 2.225 billion project will see the establishment of a Special Purpose Vehicle (SPV) company jointly operated by several Russian companies, including Pakistan’s Interstate Gas System and TMK. Is the world’s leading steel pipe supplier for the oil and gas industry, trading in Russia, the United States and Canada.
Under the agreement, Pakistan will allegedly own 74% of the stake in the pipeline operator, while Russia will own the remaining 2%. The initial agreement on the construction of the pipeline was signed back in 2015 but was later reviewed.
The project has become the largest infrastructure agreement between Pakistan and Russia since the Soviet Union built the Pakistan Steel Mill Industrial Area in Port Qasim, near Karachi, at least in the early 1970s.
“Pakistan Stream has become a major project for bilateral cooperation between Russia and Pakistan and both nations give priority to this issue,” he said. Shulginov said.
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