Pakistan & Russia Finalizes protocols for North-South Gas Pipeline Execution

The Pakistani Ministry of Energy (Petroleum Division) and the Russian Federation Ministry of Energy held the first meeting of the Russia-Pakistan Technical Committee on Mutual Cooperation for the Construction of the North South Gas Pipeline Project in Islamabad from 16-18th November 2020.

The project is a flagship strategic undertaking between Pakistani and Russian institutions to improve long-term bilateral relations between Pakistan and the Russian Federation through interpersonal communication. A new era of economic cooperation between Pakistan and the Russian Federation will begin with the project.

The Russian delegation included representatives from the Russian Federation’s Ministry of Energy, the Russian Federation’s Embassy in Pakistan, and Russian companies and corporations. Representatives of the Ministry of Energy (Petroleum Division) of Pakistan, the Ministry of Foreign Affairs, the Law and Justice Division and Inter State Gas Systems (Private) Limited were included on the Pakistani side. The Minister for Energy and the Special Assistant to the Prime Minister for Petroleum were also present at the talks.

The goal of the discussions was to finalize the large contours and parameters of the project involving the construction of a high-pressure gas transmission pipeline from Port Qasim, Karachi to Kasur (Punjab) for the transport of RLNG to the northern part of the country in order to meet the shortage of gas resulting from the increasing demands of both industrial and domestic consumers for gas.

A key factor in the process has been the recent developments following the decision of the Supreme Court of Pakistan on GIDC and the availability of GIDC funds for project development. The project has been renamed from the ‘North South Gas Pipeline Project’ to the “Pakistan Stream Gas Pipeline (‘PSGP’) Project” to better reflect the strong bilateral relations and strengthened cooperation between Pakistan and the Russian Federation for the construction of the project.

Pakistan and Russia are keen to invest in the project and to start implementing it in a timely, cost-effective and fruitful manner for the good of the citizens of Pakistan, while at the same time ensuring optimum gas tariffs.

Both sides affirmed the full use of Russian and Pakistani equipment, materials and services with a view to enhancing the technological and organizational potential of Pakistani companies and human resources by means of joint work and training. Both sides agreed to sign an amendment protocol to the Inter-Governmental Agreement (IGA) previously signed between the two governments in 2015 to represent the updated project implementation framework following the necessary approvals from the respective governments.

The parties also agreed to execute the project through a special purpose company to be formed by Pakistan and the Russian parties in Pakistan, with Pakistan having the majority shareholding.

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