Pakistan has agreed to hand over management control of the Pakistan Stream Gas Pipeline project to Russia.
Pakistan has agreed to hand over the management control of the Pakistan Stream Gas Pipeline (PSGP) project to Russia through a special company to promote a strategic partnership with Russia. He expressed keen interest under which imported gas would be supplied to Punjab. Through this project, Russia will be part of an economic project on Pakistani soil after decades.
Earlier, Russia had played a key role in setting up Pakistan Steel Mills and OGDCL. With the resolution of the trade dispute between Pakistan and Russia, the pipeline project will usher in a new era in relations between the two countries. It was decided that funds raised under the Gas Infrastructure Development Cess (GIDC) would be spent on the North-South Gas Pipeline, now renamed the PSGP. Developed a new structure under which Pakistan would have a majority stake in the company. In the revised project structure, Pakistan will have 74% and Russia 26% shares. Similarly, Pakistan will have a bigger share in the financing, but Russia will have the management control of the company.
According to sources, the two countries had signed a review agreement for the development of the North-South Gas Pipeline Project at the first Russia-Pakistan Technical Committee meeting in Islamabad on November 16-18. Under the agreement, the capacity of the pipeline project was also increased to 1.6 billion cubic feet per day. In this way, the transfer of technology to Pakistan will also take place.
