China, Pakistan Sign Gas Pipe MoU

Pakistan’s Inter-State Gas Systems (ISGS) and PowerChina April 9 signed a memorandum of understanding in Sanya, China for laying of a North-South Gas Pipeline in Pakistan, the office of Pakistani prime minister Shahid Khaqan Abbasi said the same day.

The signing ceremony was witnessed by Abbasi and Li Yanming, vice president of PowerChina.  “The pipeline would serve as a secure and continuous supply of affordable gas in areas currently showing increased demand for power generation and industrial use,” the Pakistani prime minister's office said. 

The proposed North-South Gas Pipeline will carry regasified LNG from the port city of Karachi to the northern Pakistani city Lahore.

This development comes as Russia is facing trouble in executing the pipeline project due to US sanctions. Pakistan and Russia signed a memo of understanding in 2015 which envisaged laying of the North-South Gas Pipeline. Russia nominated state-owned RT Global Resources for project execution and it was required to sign a commercial agreement with ISGS. However, due to US sanctions, Pakistan has not been able to take this forward with the Russian side.