MOSCOW – Pakistan and Russia have signed a Memorandum of Understanding(MoU) in Moscow earlier today for a $10 billion gas pipeline deal. Adelegation consisting of Pakistan’s Petroleum Division members visitedMoscow for the agreement signing ceremony for the project which will take3-4 years for completion starting from March next year.

Reports suggest that once the project is completed, Pakistan would get 500million to 1 billion cubic feet of gas daily.

Russia’s Gazprom will work with Pakistan’s state-owned Inter State GasSystems (ISGS) together on the multi-billion dollar project which is aimedat fulfilling Pakistan’s gas needs.——————————

Acting as an energy corridor between the two countries, the project wouldalso open opportunities for Pakistani exporters to target the Russianmarket, following the strengthening relations between the two countries.

The China Pakistan Economic Corridor (CPEC), which is now in itsindustrialization phase, is in need of gas for its Special Economic Zones(SEZs), The gas pipeline project would serve the purpose in that regard,observed ISGS Managing Director Mobin Saulat.

The ISGS has also been working onthe Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline.

Russia has been looking for alternative markets for its energy exports,following US sanctions. It exports huge quantities of gas to Europe,however, Russia is hoping to find a reliable market for its exports in casethe European markets decide against buying Russian gas.