Pakistan and Russia sign US $ 1.7 Billion Energy Deal
For the first time, Pakistan and Russia have signed an energy deal agreement worth US $ 1.7 billion. As per the the agreement gas pipeline will be laid between Pakistani cities- Karachi and Lahore.
The energy agreement was signed after the Russian Defence Minister Sergei Shoigu had visited Pakistan in November 2015. His visit to Pakistan was after 45 years, as the last visit to Pakistan was made by then Soviet Union’s defence minister Andrey Grechko.
This move of both countries aims to further improve their bilateral ties. Both countries also had inked a defence and military cooperation deals.
Key facts
- This pipeline will help to transport imported Liquefied Natural Gas (LNG) from Karachi to Punjab province.
- The supply of LNG is expected to start before March, 2015.
Background
Currently, Pakistan is working on two LNG pipelines as an alternative to doom Iran-Pakistan (IP) gas pipeline project, which included LNG Gwadar pipeline and south pipeline from Karachi to Lahore.
Pakistan government also has signed a deal with China to award USD 3 billion Gwader LNG pipeline and terminal project.
Thus, for first time Pakistan and Russia have signed an energy pact decades after the recent deal to increase military cooperation.
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Month: Current Affairs - December, 2014