ISLAMABAD: Pakistan and Russia have signed a revised deal to lay the North-South Gas Pipeline, now renamed the Pakistan Stream Gas Pipeline due to Islamabad’s major shareholding.
The two sides have also agreed, in principle, to execute the project through a special purpose company, which would be incorporated in Pakistan.
They also held discussions aimed at finalising the broad contours and parameters of the project involving the construction of a high-pressure gas transmission pipeline from Port Qasim to Kasur for transportation of RLNG towards the northern side of the country in order to fulfil the gas shortage emanating from growing industrial demands and domestic consumers.
Earlier, Russia had to build the pipeline, own, operate, and transfer its ownership to Pakistan after 25 years. Russia had also to make 85pc of the required expenditure on the project whereas Pakistan had to spend 15pc of the capital.
In the revised model, Pakistan has money on account of gas infrastructure development cess (GIDC) and, therefore, it would contribute 74pc of the capital and Russia will make 26pc of the expenditure. However, Russia will provide all importable material for the pipeline.