Russia is planning to make investments worth $14 billion in the energy sector of Pakistan.
During the visit of a Russian delegation headed by Gazprom Management Committee Deputy Chairman Vitaly A. Markelov, the Russian delegation pledged an investment of $14 billion in an offshore gas pipeline undertaking, North South gas pipeline project and underground gasoline storages in Pakistan.
In a statement, the officials from the delegation stated that they will invest $10 billion in an offshore gas pipeline project and $2.5 billion on North South gas pipeline project. The remaining $1.5 billion will be spent on construction of underground gasoline storage facilities in Pakistan.
They further said that the Russian agencies might be building a gas pipeline from Karachi to Lahore to transport imported fuel for meeting the high gas demand in the region.
Recently the government faced an excessive gasoline crisis, which may be prevented by aid of underground storage facilities. These facilities will help to store imported gas permitting rising fuel demand at any time, particularly in winters.
Pakistan and Russia have signed an inter-corporate agreement to conduct a feasibility study of a $10 billion offshore pipeline project.
The pipeline construction is expected to be completed in three to four
years. Inter State Gas Systems (ISGS) Managing Director Mobin Saulat and
Markelov signed the agreement in the Petroleum Division.
Russia holds huge gas deposits in Iran and has offered Pakistan and India gas exports by laying an offshore pipeline that will pass through Gwadar Port.
Minister of Petroleum, Ghulam Sarwar Khan, appreciated the expansion of bilateral relations between Russia and Pakistan. He said “this project is a manifestation of a multifaceted co-orperation between the two countries.”
Pakistan will import 500 million to one billion cubic feet of gas from Russia daily, which will be imported via a sea link.