Pakistan and Russia to strike $10bn deal on offshore gas pipeline

Pakistan and Russia to strike $10bn deal on offshore gas pipeline
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On Wednesday, Pakistani and Russian sides are going to sign in Moscow a memorandum of understanding on a $10 billion offshore gas pipeline, The Express Tribune reports.

As the Pakistani newspaper reports referring to its sources, the new pipeline will connect Pakistan and Russia and become an energy corridor between the two countries.

“Strategically, it is a very important project as the two countries will come closer to each other,” an official said. “At the same time, Pakistan will gain access to the Russian market in order to boost its overall exports which remained stagnant during the five-year tenure of the PML-N government,” Mobin Saulat, the head of the Pakistani state gas company Inter State Gas Systems (ISGS), told The Express Tribune.

As a reference, ISGS is a state-owned company in Pakistan established to implement gas import projects. The company is already working on projects in this area, in particular, it oversees the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project, which is designed to connect South and Central Asia and the construction of which is scheduled for March 2019. Now ISGS will cooperate with the Russian energy giant Gazprom. With the aim of signing an agreement within the framework of this cooperation, the Pakistani delegation has arrived in Moscow today.

According to the text of the agreement, Pakistan will purchase from Russia from 500 million to 1 billion cubic feet of gas per day. The construction of the underwater pipeline is expected to take from three to four years.