MOSCOW: Pakistan and Russia signed a protocol on the amendments to the agreement on North-South Gas Pipeline Project on Friday.
A tweet issued by the Pakistani Mission in Moscow said that Pakistan and Russia agreed to change the name of the North-South Gas Pipeline Project to the “Pakistan Stream Gas Pipeline” in a protocol agreement signed in the Russian capital.
The agreement was signed by Pakistani envoy Shafqat Ali Khan and Russia’s Energy Minister Nikolay Shulginov.
“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,” said the mission.
The Pakistan embassy stated that Islamabad desires a strategic partnership with Moscow. It also said that Pakistan looks forward to enhanced bilateral relations in all fields of mutual interest.
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, Pakistan will own 74 percent stakes in the pipeline and Russia 26 percent.
The PSGP project will deliver gas from coastal regions to industrial areas in the north and will boost the country’s capacity to internally transport imported LNG. It has been held up since 2015 due to a disagreement over fees and the US sanctions against Russian state conglomerate Rostec.
Indigenous natural gas contributes around 38 percent to Pakistan’s total primary energy supply mix. Pakistan produces around 4 billion cubic feet per day against an unconstrained demand of 6 bcfd and imports gas to meet the deficit, particularly when demand peaks in winters.
