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Pakistan and Russia have extended the government to government agreement for the $2 billion North South Gas Pipeline for six months. it was learnt reliably here.
The extension was required to advance the negotiations between Pakistani and Russian companies for the pipeline. and therefore it was granted. official sources told The Nation. Without the extension. no negotiation was possible between the two companies involved in gas pipeline project. said the source.
Currently a delegation of Russian company RT-Global Resources is visiting Pakistan and Monday started negotiations with ISGS Inter State Gas Systems (Private) Limited (ISGS) regarding North South (Lahore to Karachi) gas pipeline.
The Government to Government Agreement was due to expire on October 16. 2018 (Tuesday) and therefore it was extended for six months. official sources said. The Government to Government agreement was extended last week and the petroleum minister signed the extension on behalf of the government of Pakistan. the source said. Previously both the governments were extending the agreement on year to year basis.
It is pertinent to mention that the ECC in its meeting held on 10th January 2015 had approved the North-South Gas Pipeline Project (Project) under Government-to-Government (G2G) arrangements. The Government of Pakistan and the Russian Federation entered into G to G agreement on the cooperation for the development of the pipeline project on 16th October 2015 at Islamabad. The project will be implemented on Build Own Operate and Transfer (BOOT) model by Russian company under Government to Government Agreement. Russian side submitted the initial commercial proposal in November. 2016. which is under consideration. Earlier. Pakistan had asked Russia to make a reduction in the tolling fee for pumping liquefied natural gas (LNG).
The length of the North South pipeline will be 1122KM with 42-inch diameter. which would annually transport around 12.4 billion cubic meters (BCM) of gas LNG from Karachi to Punjab.
The source said that negotiations between ISGS and Russian company RT-Global Resources started on Monday and will continue for three days. On the first day of negotiations. the BOOT Contract terms were discussed. The legal. commercial and technical aspect of the agreement was discussed. the source added.
It is pertinent to mention here that besides North South Gas pipeline project. Pakistan and China had agreed to work on the proposal for development of 1200 MMCFD South-North Gas Pipeline. on a BOOT basis from Karachi to Lahore. An MoU has been already been signed between PCIGL and ISGS for the same.
