Moscow. October 16. Minister of energy Alexander Novak and Minister of petroleum and natural resources of Pakistan Shahid Hakan Abbasi in the presence of Prime Minister of Pakistan Nawaz Sharif has signed an intergovernmental agreement on construction of gas pipeline “North – South” from Karachi to Lahore, said the Ministry of energy of the Russian Federation.
The project will be implemented by the Russian company “RT Global Resources”, a member of the state Corporation rostec. At the moment we are surveying for the pipeline route and engineering / design work.
The pipeline length of 1100 km with a capacity of up to 12.4 billion cubic meters per year will connect terminals for liquefied natural gas (LNG) in the port city of Karachi in southern Pakistan city of Lahore in the North of the country.
“Russia and Pakistan have a long experience of successful cooperation, since the Soviet times. The construction of a gas pipeline North – South brings trade and economic cooperation between Russia and Pakistan to a new level”, – given in the message words of Novak.
The project will be implemented under the scheme BOOT (Build Own Operate Transfer). The constructed pipeline will be owned and operated by the project company for 25 years. During this period at the expense of the tariff for pumping gas is expected to make a return investment with the required return on equity, after which the pipeline will be transferred to the government of Pakistan.