The Russian Government has approved a draft agreement on cooperation with the Pakistan Government for the construction of the North-South gas pipeline.


The pipeline project is a part of a deal signed in December 2014 between Russian firm Rostec subsidiary RT Global Resources and Pakistani Inter State Gas System (ISGS) for the construction of oil and gas infrastructure in Pakistan.

The deal, in addition to North-South gas pipeline in Pakistan, includes the development of liquefied natural gas terminals, to meet the increasing natural gas demand in the country.

Rostec earlier estimated that the cost of the deal to be approximately $3bn.

Russia Energy Ministry said that the agreement provides favorable conditions for Russian participation in the construction of the North-South gas pipeline.

North-South gas pipeline, will start from the city of Karachi and end in the city of Lahore in Pakistan, will feature Russian equipment, materials, products, and technology.

Russian organizations will also be involved for the research, design, and construction of the pipeline project while Pakistan will provide the land rights required for the project implementation.

Pakistan will also carry out surveys and related work to determine the route for the North-South gas pipeline.

The agreement, which is subject to automatic extension for five-year terms, is valid for 25 years.

Image: New pipeline project will span from Karachi to Lahore in Pakistan. Photo: courtesy of Rostec.