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Pakistan, Russia sign agreement to build Pakistan Stream Gas Pipeline

The protocol was signed by Pakistan’s Ambassador in Moscow Shafqat Ali Khan and the Russian Minister for Energy Nikolay Shulginov. Source: Twitter

ISLAMABAD: Pakistan and Russia signed an inter-government agreement to develop ‘Pakistan Stream Gas Pipeline’ for gas transportation from Karachi to Kasur.

In this regard, both countries signed a protocol on the amendments to the Agreement on North-South Gas Pipeline Project in Moscow. The protocol was signed by Pakistan’s Ambassador in Moscow Shafqat Ali Khan and the Russian Minister for Energy Nikolay Shulginov.

The agreement signed after successful negotiations between Pakistan’s Ministry of Energy and Russian Ministry of Energy. As per the protocol, the project has been renamed as ‘Pakistan Stream Gas Pipeline’ and will run from Karachi to Kasur for transportation of gas. The Pakistan Stream Gas Pipeline (SPV) would be set up within 60 days of the agreement signing.

The Pakistan-Russia Inter Governmental Agreement (IGA) on North South Gas pipeline was signed between both countries in 2015 but was not implemented. The project has been delayed since 2015 years with no headway.

According to the Pakistan Embassy in Russia, the pipeline project is a flagship strategic venture between Pakistan and Russia that would strengthen bilateral cooperation. It added that Pakistan desires a strategic partnership with Russia and looks forward to enhanced bilateral relations in all fields of mutual interest.

A gas pipeline with a length of over 1,100 km and connect terminals for receiving liquefied gas (LNG) in the ports of Karachi and Gwadar with power plants and industrial consumers of gas in the Kasur district (Punjab) in the north of the country, the Russian Ministry of Energy said in a translated statement.

It said the relevant departments of the two countries had done a lot of work on the preparation of this Protocol, its signing will allow our companies to begin practical implementation of the project in the very near future, thereby helping the Pakistani side to strengthen its own energy security and increase the use of natural gas as an environment friendly source of energy.