Islamabad: The higher-ups of Pakistan and senior officials of ETK, a Russian company, on Monday started negotiations to finalise the construction agreement for Pakistan Stream Gas Pipeline (PSGP) project, according to news sources.
The final choice on which firm will build the bridge – a Russian company at a cost of USD 2.5 billion or Pakistani companies at a cost of USD 1.6 billion – will be announced soon.
A delegation of 12 members was reported to have arrived in Pakistan to discuss the Head of Terms, shareholder’s agreement, and other corporate documents with the Technical Committee set up by the government for this initiative. It was also stated that the talks will continue for a few days.
Pakistan is scheduled to construct the PSGP project with Russian cooperation. Pakistan would pay 70% of the overall cost of the North-South Gas Pipeline, while Russia will finance 30% of the project.
To address the shortfalls, 1.2 billion cubic feet of imported gas will be delivered from Karachi to Lahore under this initiative. Former Additional Secretary Petroleum Division Ayub Chaudhry stated that he supports the construction of the gas pipeline project by Pakistani businesses. Furthermore, he stated that Sui Norther Gas Pipelines Limited (SNGPL) has already begun work on the South North Gas Pipeline for Liquefied Natural Gas (LNG), which will be less expensive.
Iqra holds BS in International Relations and is passionate about writing engaging content on trending real estate topics. When not working, she is either spending time with family, shopping, or discussing shows & movies.
