Pakistan Russia to kick off historic $10 billion project

Pakistan Russia to kick off historic $10 billion project

ISLAMABAD – Following a fresh round of successful dialogue between a delegation of Ministry of Energy Petroleum Division and Russian energy experts in Moscow, Gazprom International is all set to start feasibility for laying $10 billion offshore gas pipeline.

Managing Director Inter State Gas Systems (Pvt.) Limited (ISGSL) Mobin Saulat told APP that during the recently held meeting in Russia, “both sides agreed and identified potential future areas of cooperation; agreeing to accelerate cooperation in the area of Energy with a special emphasis on oil and gas besides kick-starting the feasibility study for the $10 billion off-shore gas pipeline.”

He said that the feasibility study would include preliminary, technical, financial parameters of the project including a gas pipeline route, gas supply volumes and information.

“We aim to prepare the study within 12 months,” he detailed.

He expressed that through the pipeline, the firm will supply the commodity to Pakistan from its Middle East fields, which would have great potential of regional connectivity.

The MD termed it a major development as a result of sustained dialogue held between energy experts of the two countries.

The project envisages transporting of gas molecules from Gazprom’s sources in the Middle East onwards to Pakistan with a possibility in extending it further to South Asian countries.

The pipeline would follow an integrated approach including other ancillary projects such as Under Ground Gas storage, desalination and other power projects.

Relations between cold war foes, Russia and Pakistan have witnessed an upward trajectory in recent years in all spheres.

Both the countries have drawn closer to each other and relations have been marked with an increasing proximity and convergence on major issues.

Gazprom is making an entry in Pakistan at the time when a number of projects under China-Pakistan Economic Corridor (CPEC) are in full swing and Pakistan has emerged as a major point in the Belt and Road Initiative.

Saulat said “both the parties recognize that this will lead to mutually beneficial opportunities for implementation of joint business arising from natural gas transportation.”

The agreement would lead to establishment of a Joint Working Group which would review the project quarterly on an alternate basis in Pakistan and Russia, he added. - APP