Pakistan and Russia signed an agreement to build a 1100-km gas pipeline stretching from Karachi on Arabian Sea to the eastern city of Lahore.
The agreement was signed by Russian Energy Minister Alexander Novak and Pakistan Petroleum Minister Shahid Khaqan Abbasi.
In this project, Russia will invest 2 billion US dollars and it will be built by Russian company RT Global Resources, a subsidiary of Russian state corporation Rostec.
The pipeline is expected to get completed by December 2017.
Highlights of the Gas Pipeline
- This 1100-kilometre (680-mile) pipeline has the capacity of 12.4 billion cubic metres (438 billion cubic feet) per year.
- The pipeline will connect Karachi’s Liquefied Natural Gas (LNG) terminals with those in Lahore.
- The pipeline project will be implemented in compliance with Build Own Operate Transfer (BOOT) model.
- It will be owned and operated by the manufacturer for 25 years and after that it will be handed over to the Pakistan government.
Importance of the Event
- The project will help develop a multi-dimensional relationship with Russia in the fields of defence, trade, energy, culture, infrastructure and other spheres.
- Earlier in August 2015, Pakistan and Russia signed a landmark defence deal for the sale of 4 Mi-35 Hind E attack helicopters to Pakistan.