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Pakistan, Russia sign $10 billion offshore gas pipeline agreement
ISLAMABAD: Pakistan and Russia on Thursday have signed a historic $10 billion offshore gas pipeline agreement in Moscow. Inter State Gas System (ISGS) a state-owned Pakistani company established to handle gas import projects, will work alongside Russia’s energy giant Gazprom, to execute the multibillion-dollar project. As per the agreement, Pakistan will import 500 million to […]
ISLAMABAD: Pakistan and Russia on Thursday have signed a historic $10 billion offshore gas pipeline agreement in Moscow.
Inter State Gas System (ISGS) a state-owned Pakistani company established to handle gas import projects, will work alongside Russia’s energy giant Gazprom, to execute the multibillion-dollar project.
As per the agreement, Pakistan will import 500 million to 1 billion cubic foot of gas on daily basis from Russia which would be transported via sea ink.
The Pipeline construction is expected to be completed in three to four years.
ISGS Managing Director Mobin Saulat said that Gazprom will prepare the feasibility report on its own expense to assess the economic viability and cost of the project.
Mobin said that the China-Pakistan Economic Corridor (CPEC) has entered the industrialization phase and needs gas for duty free special economic zone.
According to the sources, the pipeline project will connect Pakistan and Russia and will act as an energy corridor between the two countries. “Strategically, this project has a very unique significance as this project will bring the two countries closer to each other,” sources told.
An official told that Pakistan meanwhile will gain the access to the Russian market to boost its exports, which remain stagnant during previous government regime.
Inter State Gas System (ISGS) a state-owned Pakistani company established to handle gas import projects is already working on schemes like Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline.
