Russia, Pakistan Sign Karachi-Lahore Gas Pipeline Deal

Pakistan and Russia signed a $1.7 billion Karachi to Lahore gas pipeline construction deal, reported local newspaper Express Tribune on Tuesday.

The energy agreement was signed during the visit of the Russian defence minister.

Pakistan is currently working on two gas pipelines, the Gwadar pipeline and south pipeline from Karachi to Lahore, the newspaper said.

Last month, Beijing and Islamabad signed a $3 billion deal under which China will finance the LNG terminal and Gwadar pipeline project.

Officials sources told Express Tribune that the pipeline would be used to transport imported LNG from Karachi to Punjab, adding that LNG terminal was in progress and first supply of LNG was expected before March next year.

At present, existing pipeline network has capacity of transporting 320 million cubic feet of gas per day (mmcfd) LNG and therefore the government was going to set up additional LNG pipeline, the newspaper added.