Pakistan and Russia on Thursday signed a historic deal for conducting feasibility study on a planned $10-billion offshore gas pipeline.
Pakistan’s Ministry of Energy Additional Secretary Sher Afgan and Deputy Energy Minister of Russia Anatoly Yanovsky signed a memorandum of understanding (MoU) for undertaking the study.
Inter State Gas Systems (ISGS) Managing Director Mobin Saulat was also present at the ceremony. On the occasion, the two sides expressed interest in enhancing bilateral relations in the energy sector.
ISGS – a state-owned Pakistani company established to handle gas import projects – has been designated by Pakistan for executing the pipeline project along with Russia’s energy giant Gazprom.
Gazprom will conduct the feasibility study and bear its expenses in order to assess economic viability and cost of the project.
According to officials, the pipeline will connect Pakistan and Russia and act as 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 five-year tenure of the PML-N government.”
Published in Daily Times, September 28th 2018.
