Islamabad: Pakistan and Russia this week signed an agreement of technical cooperation to lay the 1100-kilometre steam gas pipeline from Karachi to Lahore at an estimated cost of $2.5 billion.
The agreement was signed by Secretary Petroleum Division Dr Arshad Mahmood and Deputy Director of Russian Energy Ministry Alexander Tolparov.
The signing ceremony was attended by Minister for Energy Hammad Azhar, and representatives of the Petroleum Division and Russia’s Energy Ministry.
Energy Minister Hammad Azhar said the project faced delay since 2015, and now the agreement had been signed for technical cooperation in the construction of the pipeline that would be completed by 2023 costing $2.5 billion.
He said the gas steam pipeline from north to south of Pakistan was of great importance. The pipeline would be laid by the local companies, while the project material would be imported from Russia.
With the completion of the project, the minister said the gas would be supplied from north to south to meet the needs of the consumers efficiently, adding the pipeline tariff would be determined by the Oil and Gas Regulatory Authority.
Hammad said the agreement would help promote cooperation between the two countries in the economic and energy sectors.
The Russian delegation termed the pipeline project of great significance for Pakistan. Deputy Director of Russian Energy Ministry Alexander Tolparov said the project would prove to be a milestone for Pakistan’s progress and energy security.