MOSCOW/ISLAMABAD: Prime Minister Imran Khan is in Moscow for talks with President Vladimir Putin on issues including economic cooperation and a long-delayed gas pipeline vital to Pakistan’s economy.
The Pakistan Stream gas project, also known as the North-South gas pipeline, is to be built in collaboration with Russian companies.
“Both countries are eager to launch the project at the earliest,” a Ministry of Energy spokesman told Reuters ahead of Khan’s two-day visit.
Below are the details of the project:
PAKISTAN STREAM
— In 2015, Russia and Pakistan agreed in principle to build a 1,100 km (683 mile)-long pipeline to deliver imported Liquified Natural Gas (LNG) from Karachi on the Arabian Sea coast to power plants in Punjab.
The pipeline’s designed annual capacity stands at 12.4 billion cubic metres (bcm), with the possibility to be increased to 16 bcm.
— The cost will require investments of between $1.5 billion, according to Russia, to as much as $3.5 billion, estimated by Pakistan, with 26 percent of it to be financed by Moscow and the remaining 74 percent by Islamabad.
— The project was to be launched in 2020, but Russia had to replace the initial participant after the company was hit by western sanctions not related to the Pakistan Stream project.
Currently, the pipeline, a rare example of Russian participation without state gas company Gazprom, involves the Eurasian Pipeline Consortium, steel pipe maker TMK, which produces steel pipelines for the energy sector, and Operational Services Centre run by the Russian Energy Ministry.
Russian shareholders expect to return their investments from gas shipping fees.
— Currently, feasibility studies are taking place on the project but there is no firm date set for the launch. According to Russian media reports, the shareholder agreement for the Pakistan Stream should be signed this month.
— On May 28, 2021, Russian Energy Minister Nikolai Shulginov and Pakistan’s ambassador in Moscow Shafqat Ali Khan signed an agreement on behalf of their countries to build the Pakistan Stream gas pipeline.
