Pakistan, Russia sign 1,100km gas pipeline agreement

October 16, 2015

Pakistan and Russia have signed a major agreement to build a 1,100-km North-South gas pipeline from Lahore to Karachi.
In this project, Russia will invest 2 billion dollars and it will be built by Russian company RT Global Resources, a subsidiary of Russian state corporation Rostec.
Key facts

The pipeline is expected to get completed by December 2017 and has capacity of 12.4 billion cubic metres per annum.
It will connect Karachi’s liquefied natural gas (LNG) terminals with those in Lahore.
The pipeline project will be implemented in compliance with Build Own Operate Transfer (BOOT) model.
It will be owned and operated by the manufacturer for 25 years and after that it will be handed over to the Pakistan government.
The project will take cooperation between Russia and Pakistan to a new level. It will also help to develop a multi-dimensional relationship with Russia in the fields of defence, trade, energy, culture, infrastructure and other spheres.

Earlier in August 2015, Pakistan and Russia had signed a landmark defence deal for the sale of 4 Mi-35 ‘Hind E’ attack helicopters to Pakistan. Currently, both nations are in talks for the delivery of Sukhoi Su-35 fighter jets which in turn will take cooperation between the two Cold War-era adversaries to a new level.

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