Ties triumph: Pakistan, Russia ink $1.7b energy deal

Discussion in 'Pakistan' started by Neo, Dec 23, 2014.

  1. Neo

    Neo Senior Member Senior Member

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    Ties triumph: Pakistan, Russia ink $1.7b energy deal

    ISLAMABAD:*Pakistan and Russia signed a most sought-after energy deal of $1.7 billion for laying a liquefied natural gas (LNG) pipeline from Karachi to Lahore. The supply of LNG is expected before March next year.

    It is for the first time Islamabad and Moscow have signed an energy pact decades after their defence deal.

    The energy agreement was signed during the visit of the Russian defence minister. Moreover, Islamabad and Moscow also signed a defence and military cooperation deal, a move seen by economic experts as ushering in a gradual improvement in ties between the two countries.
    Before Gen Ziaul Haq’s military* regime, Russia had helped Pakistan set up the Karachi Steel Mills and also supported the Oil and Gas Development Company Limited, which is still using old Russian machinery in exploring oil and gas.

    Pakistan is currently working on two LNG pipelines as an alternative to the apparently doomed Iran-Pakistan (IP) gas pipeline project, which included LNG Gwadar pipeline and south pipeline from Karachi to Lahore.

    The government has signed a deal with China to award $3 billion Gwader LNG pipeline and terminal project.

    Earlier, Pakistan had offered China and Russia to lay IP gas pipeline but both the countries had backed out due to sanctions imposed against Iran.

    “However, the government has offered Moscow to sign a deal on government to government basis of $1.7 billion for laying LNG pipeline from Karachi to Lahore during the recent meeting of Pak-Russia Joint Ministerial Commission following a defence deal between the two countries,” sources said.

    There was a good development between Islamabad and Moscow in the JC meeting to enhance bilateral energy cooperation, the sources maintained.

    Officials pointed out that the pipeline would be used to transport imported LNG from Karachi to Punjab, adding that LNG terminal was in progress and first supply of LNG was expected before March next year.

    At present, existing pipeline network has capacity of transporting 320 million cubic feet of gas per day (mmcfd) LNG and therefore the government was going to set up additional LNG pipeline.

    The regulator Oil and Gas Regulatory Authority (Ogra) has already allowed gas utilities Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company (SSGC) to generate funds from gas consumers to set up LNG pipeline.

    SNGPL has planned to invest $750 million and SSGC $300 million to set up LNG pipeline. This pipeline was also likely to link with Gwadar LNG pipeline in future to pump gas from Iran and also LNG supply through a terminal to be set up at Gwadar.

    Officials said that Pakistan had almost done a deal with China to lay Gwadar LNG pipeline which would be connected to Iran and south LNG pipeline from Karachi to Lahore had been offered to Russia.

    The government of Pakistan was keen to award contract of south LNG pipeline to Russia on government to government basis which would create competition with China.

    “The presence of two countries [Russia and China] in energy sector would open new avenues for attracting more investment,” sources maintained.

    Ties triumph: Pakistan, Russia ink $1.7b energy deal – The Express Tribune
     
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  3. brational

    brational Regular Member

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    I have been listening to Pakistan's Billion Dollar since my childhood and all talks put together is not less than several Trillion Dollar talk and the result is beforehand.

    Few synonyms in Paki context -

    Pipeline - Gutter
    Foreign Aids - Atom Bombs
    Education & Training - Terrorist Training & Export
    Audit - Blasphemy
    Progress & Prosperity - Jihad and Killing.
    Justice - Innocence is Crime.
    Foreign Relation - ISI
    MoU - Project Commissioned.
     
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  4. Neo

    Neo Senior Member Senior Member

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    I can see some as*es burning already.
    How dares Russia invest in Pakistan! :lol:
     
  5. Blackwater

    Blackwater Veteran Member Veteran Member

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    There is saying in India

    Pass ke fayade se door ka nuksaan dekho
     
  6. brational

    brational Regular Member

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    :pound:

    [​IMG]
     
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  7. prohumanity

    prohumanity Regular Member

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    Neo.....Pakistan can not be a self respected nation with some self esteem if it continues to believe that licking a major power's a*ss is only way to feel important. India doesnot have to be concerned if a lousy 1.7 billion deal is made by Russia....that's nothing compared to Indo-Russian partenship of decades and bond of trust and mutual respect. India and Russia will remain best friends forever..no deal can change that fact. Its the love between Indian and Russian people which nothing can break...not even your masters in Washington.
     
  8. Known_Unknown

    Known_Unknown Devil's Advocate Stars and Ambassadors

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    ROFLMAO at this "deal"!! $1.7 billion for Russia to construct a pipeline between two Pakistani cities?? Pakistan requires foreign technical assistance to build a mere pipeline? How hard can it be to dig a hole and bury a metal/concrete pipe of a certain diameter! Hahaha....this is such easy money, if I was Russia, I'd have offered to build it too!
     

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