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2015-10-20 19:15:00

PAKISTAN & RUSSIA GAS PIPELINE

PAKISTAN & RUSSIA GAS PIPELINE

Pakistan and Russia on Friday signed a major agreement to build a 1,100-km gas pipeline from Lahore to Karachi, that will take cooperation between the two Cold War-era adversaries "to a new level".

The agreement was jointly signed by Pakistan Petroleum Minister Shahid Khaqan Abbasi and Russian Energy Minister Alexander Novak in a ceremony attended by Prime Minister Nawaz Sharif.

The 1,100 km 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 Radio Pakistan reported.

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

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

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 project will take cooperation between Russia and Pakistan "to a new level", Mr. Novak said in a statement.

oilandgaseurasia.com

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Tags: PAKISTAN, RUSSIA, GAS, PIPELINE
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