Russia Approves Implementation of Gas Pipeline Project in Pakistan

Russian government has approved the draft agreement between Moscow and Islamabad on cooperation in the implementation of the North-South gas pipeline project.

“The Agreement provides favourable conditions for the construction of the North-South gas pipeline in the Islamic Republic of Pakistan from the city of Karachi to the city of Lahore,” Russian government said in a statement Thursday.

The implementation of the agreement will be overseen and coordinated by the Russian Ministry of Energy and the Pakistani Ministry of Petroleum and Natural Resources.

The project implementation involves the maximum possible use of Russian technology, materials, equipment and products, as well as the participation of Russian research, design and construction organisations, the Russian government said.

The Pakistani side will ensure the rights for the use of land plots necessary for the project implementation, for carrying out surveys and work related to ascertaining the route for the North-South gas pipeline.

The agreement is valid for 25 years and subject to automatic extension for five-year terms.

Last December, Rostec announced that its subsidiary, RT Global Resources, would be building oil and LNG pipelines and terminals in Pakistan with total cost of about $3 billion.