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Pakistan-Russia Gas Pipeline Agreement
Oct 20, 2015

Pakistan and Russia signed a major agreement to build a 1,100-kilometre gas pipeline from Lahore to Karachi at an estimated cost of 2 billion dollar. Russian energy minister Alexander Novak led a Russian delegation to Pakistan to sign the deal. This was the first such visit by a Russian energy minister to Pakistan in three decades.

  • Russia will invest $2 billion in the project, the first phase of which is expected to conclude by December 2017 with the completion in 2018.

  • The 1,100-kilometre pipeline with a capacity of 12.4 billion cubic metre per annum will connect Karachi's Liquefied Natural Gas (LNG) terminals with those in Lahore.

  • The project will be implemented in compliance with BOOT model (Build Own Operate Transfer).

  • The pipeline will be owned and operated by the manufacturer for 25 years. After that the pipeline will be handed over to the Pakistan government.

  • The North-South gas pipeline project would be built by Russian company RT Global Resources, a part of Russian state corporation Rostec.

  • The growing cooperation between Pakistan and Russia would help a great deal in fulfilling Pakistan's energy requirements.

  • Pakistan and Russia are deepening cooperation in various sectors as ties have been on an upward trajectory for the past few years.

Both sides reviewed the overall state of bilateral energy cooperation between the two countries, the possibility of greater Russian investment in Pakistan's oil and gas sector and exchanged views on the north-south gas pipeline which would mark a new milestone in the bilateral energy cooperation between both countries.


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