Pakistan Russia to ink yet another strategic mega project: Sources
ISLAMABAD: Pakistan and Russia are close to ink yet another strategic pipeline project across Pakistan.
Both are giving final touches to a BOOT (built own operate and transfer) based agreement for laying down $2 billion 800km North-South RLNG specific pipeline staring from Nawabshah to Lahore.
“Once the project gets completed, the Russian company is most likely to charge 70-75 cents per mmcfd gas as transportation tariff.”
Pakistan’s two LNG terminals are currently equipped with the off-take guarantee of 1.2 bcfd re-gasified LNG from the government of Pakistan. However, three private-to-private model based LNG terminals are also in pipeline, which may be operational by 2020.
And on top of that, (Turkmenistan-Afghanistan-Pakistan –India) TAPI line is also re-scheduled to be operational by 2020.
Under this project, Pakistan will be importing 1.3 bcfd gas.
The main problem will be how to evacuate the gas to various parts of the country and for this purpose both Pakistan and Russia will give the final shape to the BOOT agreement.
The N-S pipeline with diameter of 42 inch will be having the capacity to evacuate 1.2 bcfd gas. Pakistan Inter-State Gas System (ISGS) and from Russia’s side RT Global will engage in talks. Both sides have done maximum work in the last two years towards the agreement. But the main problem that hindered its execution is the US sanctions on the Russian company.