Pakistan and Russia to ink multi billion dollars NSGPP project

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Pakistan and Russia to ink multi billion dollars NSGPP project

Russia will soon sign an amended Inter-Governmental Agreement (IGA) with Pakistan for the construction of the flagship North-South Gas Pipeline (NSGPP).

As per the amended agreement that is subject to the terms and conditions set forth by both countries, the pipeline will stretch 1,100 km from Punjab to Karachi’s shoreline. ------------------------------

The revised IGA will allow Pakistan to essentially have “the major shareholding with 74 percent takes in the pipeline of 1,122 kilometers from Karachi (Port Qasim) to Kasur (Punjab), and Russia will have 26 percent equity”.

A report by Bloomberg indicates that Pakistan will have the majority share between 51 and 74 percent, and Russia will own the rest. ------------------------------

Pakistan and Russia signed an initial agreement for the NSGPP project in 2015 but developments had failed to materialize in the beginning, largely because of fee disagreements and American sanctions against Russia.

Now, the two countries will soon sign an amended MoU on the same project which is expected to commence later this year.