ISLAMABAD: Pakistan and Russia on Thursday agreed to follow timelines and expedite work on a flagship gas pipeline project that will connect the Pakistani cities of Karachi and Kasur, Pakistani media reported on Friday.
The 1,122-kilometer pipeline, earlier called the North-South Pipeline but recently renamed the Pakistan Stream Gas Pipeline (PSGP), will deliver 12.3 billion cubic meters of liquified natural gas from Pakistan’s coastal regions to its industrial areas in the north.
A technical session on the project was held in Islamabad from August 24-26, the Express Tribune newspaper reported.
“The scheme has made a significant headway at the conclusion of first technical session parleys between the two sides,” the newspaper said, citing a press statement released after the technical session.
“The Pakistan Stream Gas Pipeline project is a reflection of the expanding bilateral relations between Pakistan and the Russian Federation,” the statement said. “It shall act as a catalyst for strengthening relations between the two countries.”
Pakstream LLC CEO Vladimir I Shcherbatykh led the Russian delegation during the three-day technical session, while the Pakistani side was represented by Energy Secretary Dr. Arshad Mahmood and Inter-State Gas System Managing Director Syed Zikria Ali Shah.
Pakstream LLC was nominated by Moscow under an inter-governmental agreement (IGA) signed between Pakistan and the Russian Federation in May 2021 while Islamabad nominated the ISGS.
During the three-day meeting, the two sides deliberated on technical specifications of the pipeline, its design parameters and transmission of re-gasified liquefied natural gas (RLNG) from Karachi to Kasur, according to the statement.
They decided to expedite technical studies and surveys as well as further fast-track work in the planning stage, including field and reconnaissance surveys.
Since 2015, the PSGP project was held up due to a disagreement over fees and the United States sanctions against Russian state conglomerate, Rostec.
The revised agreement was signed in Moscow between Russia’s energy minister Nikolay Shulginov and Pakistan’s envoy to the Russian Federation Shafqat Ali Khan.
The construction of the gas pipeline is estimated to cost about $2.2 billion, though its official cost has not been confirmed yet.
