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Pakistan, Russia ink agreement to build an offshore gas pipeline

February 6, 2019

Photo: AFP/file

Russian energy giant Gazprom has signed an inter-corporate agreement with Inter State Gas Systems Pakistan for constructing an offshore gas pipeline, a press release said on Wednesday.

A Russian delegation called on Petroleum Minister Ghulam Sarwar Khan at his office to express their interest in the exploration and production of gas in Pakistan. Vitaly Markelov of Gazprom, who was part of the Russian delegation, and IGS’s Managing Director Mubin Saulat signed the agreement.

Appreciating the expanding trajectory of bilateral relations between the two countries, the federal minister termed the pipeline project a manifestation of multifaceted cooperation between Pakistan and Russia.

Gazprom will use the pipeline to transport gas from its sources in the Middle East onwards to Pakistan and may extend it further to South Asian countries. “The pipeline would follow an integrated approach including other ancillary projects such as Under Ground Gas storage, desalination, and other power projects,” the press release said.

Pakistan will import some 500 million to 1 billion cubic foot of gas every day from Russia, which would be transported via sea link, the agreement says. The pipeline construction is expected to be completed in three to four years.

After Pakistan’s gas deposits depleted, the country started facing a shortage of natural gas to meet its industrial and domestic needs, especially in Punjab. Responding to the crisis, the government introduced various policies, including limiting supply to CNG stations. Later on, it signed various agreements to import LNG.

However, with Special Economic Zones of the China-Pakistan Economic Corridor materialising, the demand for gas will increase. The offshore pipeline will be one of the key projects to meet this gr


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