Russia, Pakistan Sign Gas Pipeline Construction Agreement

Moscow and Islamabad have signed an intergovernmental agreement on the construction of a gas pipeline from Karachi to Lahore, the Russian energy ministry said Friday.

The agreement was signed by Russian energy minister Alexander Novak and Pakistani counterpart Shahid Khaqan Abbasi.

"The construction of the ‘North-South’ gas pipeline is bringing trade-economic cooperation between Russia and Pakistan to a new level," Novak said as quoted in the ministry’s Friday statement, news agency Sputnik reported.

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 in August.

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.