Russia to invest $2b in gas pipeline
Russia will invest a whopping $2 billion in Pakistan to build a 1,100-kilometre pipeline from southern port city of Karachi to Lahore to transport liquefied natural gas.
“Pakistan and Russia have finalized an LNG pipeline deal in a recent meeting in Moscow and the two countries will sign a government-to-government basis deal next month,” Petroleum Minister Shahid Khaqan Abbasi was quoted as saying by a local newspaper.
Abbasi said that in return for the investment, Russian companies will be awarded the contract to build the pipeline.
The formal agreement between the two sides is expected to be signed next month, following which Pakistan will also sign a commercial agreement with a Russian firm that Moscow will identify as its preferred contractor to build the pipeline.
The financing for the LNG pipeline comes as a prelude to Russia’s offer to sell LNG to Pakistan. According to the agreement, the contract will be awarded without any formal bidding process.