Islamabad: Pakistani officials and senior officials from ETK, a Russian corporation, began negotiations on Monday to finalise the construction agreement for the Pakistan Stream Gas Pipeline (PSGP) project.
The final decision on which company would construct the bridge – a Russian firm for USD 2.5 billion or Pakistani firms for USD 1.6 billion – will be made soon.
A 12-member delegation has arrived in Pakistan to examine the Head of Terms, shareholder agreement, and other corporate documents with the Technical Committee established by the government for this project. The talks will also last a few days, according to reports.
Pakistan is planning to build the PSGP project with Russian assistance. Pakistan would cover 70% of the total cost of the North-South Gas Pipeline, while Russia will fund 30% of the project.
This project will send 1.2 billion cubic feet of imported gas from Karachi to Lahore to overcome the gaps. Former Additional Secretary of the Petroleum Division, Ayub Chaudhry, has declared that he favours Pakistani companies building the gas pipeline. He also stated that Sui Northern Gas Pipelines Limited (SNGPL) has already started work on the South-North Gas Pipeline for Liquefied Natural Gas (LNG), which will be cheaper.