The three-day North-South Gas Pipeline Project (NSGP) between Pakistan and Russia begins today.
A technical team led by Special Representative of the Russian Ministry of Energy DL Kipnik has arrived in Islamabad to implement the project. The talks will focus on amending the intergovernmental agreement and the equity sharing formula, as well as the SPV of the joint venture company.
Pakistan will be represented at the talks by Saira Najib, MD, Interstate Gas Company. The project has already been delayed for five years. Both countries are working to make the plan a reality.
In the past too, Russia had helped establish Pakistan Steel Mills and OGDCL in Pakistan. While Pakistan is also importing wheat from Russia to meet its food needs. The project is worth about ً 2.25 billion.
During the talks, which will take place on November 8-18, the technical teams of the two countries will discuss amendments to the IGA. Pakistan has already briefed the Russian team on the Supreme Court decision on Gas Infrastructure Development Cess (GIDC).
Rs. 305 billion has been deposited under GIDC which is with the Finance Division. While Rs 517 billion remains to be recovered from fertilizers, CNG, power sector and industrial sector. Islamabad has suggested that Pakistan will have 51% equity shares in the project while Russia will have 49% shares.
The 5% equity will cover land acquisition costs, security and gas companies, civil works services. The project will also discuss progress on Engineering, Procurement and Construction (EPC), Equity Profit (ROE) based on construction, ownership, operation and transfer (BOT) for 25 years. ۔
Pakistan wants construction through Fed by Sui Companies, a joint venture company. Russia will provide compressors, pipelines and other equipment. TM is the world's number one pipeline company and will play a key role in the project. It should be noted that whether in the deep sea or on land, Russia's expertise in laying pipelines is extraordinary.
