Observer Report Moscow
A progress has been made on Pakistan, Russia North-South Gas Pipeline project following the comprehensive strategy of the federal government as an amended inter-governmental agreement (IGA) was signed between both countries in Moscow.
The progress was made in result of successful negotiations between the Ministry of Energy – Petroleum Division and Russian Ministry of Energy after they agree to update the protocol.
Pakistan’s Ambassador to Russian Federation Shafqat Mahmood signed the protocol to the inter-governmental agreement on Friday along with Russian Minister for Energy Nikolai Shulginov in Moscow.
According to a press statement, the inter-governmental agreement has been updated as a protocol to reflect the utilisation of Gas Infrastructure Development Cess and continued partnership with Russia to build the project.
Moreover, Pakistan Stream Gas Pipeline SPV will be set up within 60 days after the signing to implement the decisions.
As per the Protocol the Project has been renamed as “Pakistan Stream Gas Pipeline”. The pipeline will run from Karachi to Kasur for transportation of gas, said the Pakistan Foreign Office.
An inter-governmental agreement on North South Gas pipeline had been signed between Pakistan and Russia to enhance bilateral cooperation in the hydrocarbon sector in 2015. However, the energy project was delayed due to non-implementation of the decisions.
Pakistan desires a strategic partnership with Russia and looks forward to enhanced bilateral relations in all fields of mutual interest.