Russian Energy Minister, Nikolay Shulginov, and Pakistan’s ambassador to Russia, Shafqat Ali Khan signed the amended inter-governmental agreement for the flagship project of North-South Gas Pipeline (NSGPP), according to NeftegazRU.
The project renamed as “Pakistan Stream Gas Pipeline (PSGP)” will deliver natural gas from coastal regions to industrial areas in the north, enhancing Pakistan’s capacity to transport imported liquefied natural gas (LNG) internally. The 1,100 km-long pipeline will have a capacity to pump 12.4 billion m3 of gas annually.
Pakistani officials have put the project’s cost at $2.25 billion, which is not yet finalized by the Russian side. According to the agreement, Pakistan will own 74% stakes in the pipeline, while Russia will own 26%. Russian officials visited Pakistan for 3-day-long negotiations to finalize work on the project in November 2020.
It is worth noting that Pakistan’s natural gas production has dropped to 3.2 billion cubic feet per day (bcf/d) from 4.2 bcf/d and to meet the increasing deficit of 2.5 bcf/d, the country is importing LNG of 1-1.2 bcf/d, depending on the country’s demands.