Islamabad, 26 Sep (UNI) Russia and Pakistan are set to sign $10 billion gas pipeline deal in Moscow on September 27, said a report in Express tribune. The deal will be signed between Pakistan’s state owned company Inter State Gas Systems (ISGS) and Russia’s energy tycoon Gazprom.
ISGS which was established to handle gas import projects is currently involved in $10 billion Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project which will connect South and Central Asia, is scheduled to start in March 2019.
The multi-million gas pipeline deal was finalized during the rein of Pakistan Muslim League-Nawaz (PML-N) government. A Pakistani delegation will arrive in Moscow on Wednesday to sign the deal.
Gazprom will conduct the whole study to analyze how much cost & time will be required for the project. According to the agreement, Pakistan is expected to buy some 500 million to 1 billion cubic foot of gas from Russia daily.
ISGS Managing Director Mobin Saula said “China-Pakistan Economic Corridor (CPEC) has now entered the industrialisation phase and needs gas for duty and tax-free Special Economic Zones (SEZs),”. “The offshore gas pipeline will meet energy needs of industries being set up in the economic zones along CPEC route” he added.
Due to decline in domestic gas production, Pakistan is continuously facing severe gas crisis from past many years. The PML-N government started liquefied natural gas (LNG) imports from Qatar under a 15-year agreement.