Oct 16 , 2015
News
Pakistan, Russia ink $2 bln deal on North-South Gas Pipeline project
Project will be capable of transporting 1.2 billion cubic feet of gas from Karachi to Lahore by laying 42 inch diameter pipeline
APP
ISLAMABAD - Pakistan and Russia on Friday signed an Agreement on laying a 1100-kilometre-long pipeline from Karachi to Lahore with a Russian investment of $2 billion.The Agreement on “Cooperation for the development of North-South Gas Pipeline” was inked by Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi and Russia’s Minister for Energy Alexander Novak here at the PM House. Prime Minister Nawaz Sharif witnessed the signing ceremony.
Under the inter-governmental agreement, the Russian Federation through its state corporation RT-Global Resource will collaborate with Pakistan’s Inter-State Gas System (Pvt) Ltd for the laying of pipeline. Abbasi told APP that the project was of great significance for Pakistan as it will help carry the additional volume of imported gas from the country’s South to rest of the country.
He said that the pipeline would develop a proper mechanism for the transportation of gas from South to other parts of country, for which no system existed at present. He said that the North-South pipeline project was part of the government’s vision to fulfill the country’s energy needs on priority basis. He said that China was also expected to collaborate in execution of the gas pipeline project, which will be completed in 30 months.
The project would be capable of transporting 1.2 billion cubic feet of gas from Karachi to Lahore by laying 42 inch diameter pipeline. The first phase is expected to be completed by December 2017. The Economic Coordination Committee (ECC) had approved the North-South Gas Pipeline Project under the government-to-government agreement in January 2015. The draft of inter-government agreement was approved by Prime Minister Nawaz in July 2015.
The ECC had designated Inter-State Gas System (Pvt) Ltd as the executing agency to implement the project in liaison with Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL).
Courtesy www.dailytimes.com.pk