The Russian government has approved a draft agreement with the government of Pakistan on cooperation in the construction of North-South gas pipeline, a Friday statement on the Russian Cabinet website says.
RT Global Resources, a subsidiary of Russia’s state technologies corporation Rostec and Pakistani Inter State Gas System (ISGS) announced a project to build Pakistan’s oil and gas infrastructure in December 2014. The project includes the construction of liquefied natural gas terminals as well as the North-South gas pipeline in Pakistan. Pakistani Prime Minister Nawaz Sharif announced in July that his country had fulfilled the necessary formalities for laying the pipeline and was waiting for Russia to sign a relevant agreement.
The agreement provides favourable conditions for the construction of the North-South gas pipeline, with Russian participation, in the Islamic Republic of Pakistan, from the city of Karachi to the city of Lahore.
The government approved the proposal submitted by the Russian Energy Ministry. The proposal said the agreement provides favourable conditions for the construction of the North-South gas pipeline in the Islamic Republic of Pakistan from the city of Karachi to the city of Lahore.
The implementation of the agreement will be overseen and coordinated by the Russian Ministry of Energy and the Pakistani Ministry of Petroleum and Natural Resources.
The project implementation involves the maximum possible use of Russian technology, materials, equipment and products, as well as the participation of Russian research, design and construction organisations.
The Pakistani side will ensure the rights for the use of land plots necessary for the project implementation, for carrying out surveys and work related to ascertaining the route for the North-South gas pipeline. The Agreement is valid for 25 years and subject to automatic extension for five-year terms.