Pakistan, Russia sign $10bn gas pipeline deal

MOSCOW/ISLAMABAD: In what is being seen as a historic deal, Pakistan and Russia have signed a $10-billion offshore gas pipeline agreement in Moscow.

The project will help Russia cement its place in the energy market of Pakistan.

Under the agreement, Inter State Gas Systems (ISGS), a state-owned Pakistani company, will collaborate with Russia’s energy giant Gazprom, to execute the mega project.

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Pakistan will import some 500 million to 1 billion cubic foot of gas from Russia daily, which would be transported via sea link, the agreement stipulates. The pipeline construction is expected to be completed in three to four years.

According to officials, the pipeline will connect Pakistan and Russia and act as an energy corridor between the two countries. “After the agreement, Pakistan will gain access to the Russian market in order to boost its overall exports which remained stagnant during five-year tenure of the previous government.”

These projects are being termed the game changer for Pakistan as they will not only lead to regional connectivity, but will also meet growing energy needs of the country.

A report quoted SGS Managing Director Mobin Saulat as saying that the, “China-Pakistan Economic Corridor (CPEC) has now entered the industrialization phase and needs gas for duty and tax-free Special Economic Zones (SEZs). The offshore gas pipeline will meet energy needs of industries being set up in the economic zones along CPEC route,” he added.