Pakistan, Russia sign 1,100km gas pipeline agreement

Pakistan and Russia have signed a major agreement to build a 1,100-km North-South gas pipeline from Lahore to Karachi.
In this project, Russia will invest 2 billion dollars and it will be built by Russian company RT Global Resources, a subsidiary of Russian state corporation Rostec.
Key facts

• The pipeline is expected to get completed by December 2017 and has capacity of 12.4 billion cubic metres per annum.
• It will connect Karachi’s liquefied natural gas (LNG) terminals with those in Lahore.
• The pipeline project will be implemented in compliance with Build Own Operate Transfer (BOOT) model.
• It will be owned and operated by the manufacturer for 25 years and after that it will be handed over to the Pakistan government.
• The project will take cooperation between Russia and Pakistan to a new level. It will also help to develop a multi-dimensional relationship with Russia in the fields of defence, trade, energy, culture, infrastructure and other spheres.

Earlier in August 2015, Pakistan and Russia had signed a landmark defence deal for the sale of 4 Mi-35 ‘Hind E’ attack helicopters to Pakistan. Currently, both nations are in talks for the delivery of Sukhoi Su-35 fighter jets which in turn will take cooperation between the two Cold War-era adversaries to a new level.

Month: Current Affairs - October, 2015