Pakistan, Russia sign amended gas pipeline accord to enhance strategic ties

In a major development, the three-day Pakistan and Russia talks on 1,122-km high-pressure RLNG pipeline from Karachi (Port Qasim) to Kasur (Punjab) ended with amendment in the Inter-Governmental Agreement (IGA) heralding the pavement for new era of strategic relationship between the two countries

Nov 19, 2020
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In a major development, the three-day Pakistan and Russia talks on 1,122-km high-pressure RLNG pipeline from Karachi (Port Qasim) to Kasur (Punjab) ended with amendment in the Inter-Governmental Agreement (IGA) heralding the pavement for new era of strategic relationship between the two countries.

Both the sides had earlier signed an Inter-Governmental Agreement (IGA) in 2015 when Russia was to erect the project with 100 percent financing, but after the GIDC verdict by the Supreme Court, and availability of liquidity with Petroleum Division, the Inter-Governmental Agreement has been amended and the North South Gas Pipeline Project (NSGPP) has been renamed as Pakistan Stream Gas Pipeline Project (PSGPP) with 26 percent equity share from Russia. "Russia has not adopted to keep 49 percent shares in equity offered by Pakistan, but decided to have its equity at 26 percent. It means Pakistan will be having 74 percent equity in the project. The pipeline project will be backed by agreement based on take and pay mode with no sovereign guarantee," one of the participants of the three day talks told The News.

“The talks during November 16-18 witnessed many upheavals and took dramatic turns but with skillful and meaningful role of Special Assistant to Prime Minister on Petroleum Nadeem Babar and Ms Saira Najeeb, MD of Inter State Gas Company, managed to get the IGA amended in the supreme interest of the country with Pakistan having majority shares of 74 percent in terms of equity in the project.”

https://www.thenews.com.pk/print/745561-karachi-kasur-gas-pipeline-project-pakistan-russia-sign-amended-gas-pipeline-accord

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