Russia and Pakistan signed a revised agreement to extend the Pakistani gas pipeline, previously recognized as the North-South gas pipeline, with Pakistan’s large shareholding.
Both countries – Russia and Pakistan agreed on Wednesday after three days of talks on the RLNG high-pressure pipeline from Karachi (Qasim port) to Kasur (Punjab) with 1,122 kilometers rename the North-South gas pipeline to the stream gas pipeline due to the significant contribution of Pakistan. Moreover, Russia and Pakistan also agreed to use a special purpose organization to complete the project incorporated in Pakistan.
Although Russia is a minor shareholder in the pipeline project, Pakistan will guarantee maximum use of Russian materials, counting resources, and equipment. The purpose of using resources and technology from Russia is to boost the operational and technical capabilities of Pakistani firms and human resources through work and peer learning.
Pakistan now has the capital in its GIDC (Gas Infrastructure Development Cess), contributing 74 percent of the capital, and Russia will have to pay 26 percent of the cost. But the foreign country will provide all imported resources for the pipeline.
