Thursday, January 20, 2022

Progress made on Pakistan-Russia stream gas pipeline project

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ISLAMABAD: A progress was made on the stream gas pipeline project between Pakistan and Russia as the dates for the signing of relevant agreements and documents have been finalised, citing sources, ARY News reported on Sunday.

Diplomatic sources told ARY News that Russia greenlighted important matters related to the construction of a stream gas pipeline in Pakistan. The dates for the signing of relevant documents and agreements have been finalised for the stream gas pipeline project. The construction work of the project will be commenced in 2022.

It was learnt that Pakistan and Russia have agreed on a dialogue draft for making progress on the shareholders’ agreement. An agreement to formally establish a company for pipeline’s construction will be signed on January 31, 2022.

The signing of the legal documents will pave way for the establishment of a special purpose company. Islamabad and Moscow will sign the stream gas pipeline project’s shareholders’ agreement on February 15, said sources.

READ: PAKISTAN, RUSSIA SIGN IGA FOR NORTH-SOUTH GAS PIPELINE PROJECT

Moreover, Pakistan and Russia have also made an agreement regarding the provision of facilities for the construction of the stream gas pipeline. The relevant agreement regarding the facilities will also be signed on February 15.

The project aims to construct a 1,100-kilometre-long stream gas pipeline at the cost of $2.5 billion to $3 billion that will enable the supply of 12.6 billion cubic meters of gas.

In July, Pakistan and Russia had signed an agreement for the construction of a 1,100-kilometre-long stream gas pipeline from Karachi to Lahore which will be completed by 2023.

The agreement of the Pakistan Stream Gas Pipeline Project had been signed in a ceremony by secretary petroleum Arshad Mahmood and the director of the Russian energy ministry. Energy Minister Hammad Azhar and representatives of the Russian energy ministry had also attended the ceremony.

Hammad Azhar had said that the gas pipeline project was facing a delay since 2015 and both countries have signed an agreement for technical cooperation. The project will be completed by 2023 at the cost of $2.5 billion.

He had said that the north-south stream gas pipeline project was an important project while local companies will complete the work for laying gas pipeline and the material will be imported from Russia.

Azhar had said that Oil and Gas Regulatory Authority (OGRA) will finalise the tariff of the gas pipeline that will be used for gas supply from the northern to the southern part of the country.

The energy minister had said that cooperation in the economic and energy sectors will be increased through the latest agreement.

The head of the Russian delegation Alexander Tolparov had said that the gas pipeline project will become a milestone for Pakistan in terms of energy security.

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