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Pakistan and Russia sign $2bn gas pipeline agreement
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Print Pakistan and Russia on Friday signed an inter-governmental agreement for the construction of a gas pipeline from Lahore to Karachi, Radio Pakistan reported.
Russia will invest $2 billion in the project, the first phase of which is expected to conclude by December 2017.
The 1,100 kilometre pipeline with a capacity of 12.4 billion cubic metre per annum will connect Karachi’s liquefied natural gas (LNG) terminals with those in Lahore.
The agreement was jointly signed by Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi and Russian Energy Minister Alexander Novak in a ceremony attended by Prime Minister Nawaz Sharif.
The project will be implemented in compliance with the Boot model (Build Own Operate Transfer).
The built pipeline will be owned and operated by the project company for 25 years.
During this period payments for gas deliveries will help the company return the investments and make profit. After that the pipeline will be handed over to the government of Pakistan.
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