Islamabad: Pakistan and Russia have agreed to sign a Shareholders’ Agreement (SHA) and a Facilitation Agreement (FA) for the Karachi-Kasur (Lahore) gas pipeline project.
According to reports, the project will start next month for about $2.05 billion and a simultaneous series of measures will be introduced.
An official stated that Pakistan and Russia would exchange SHA and FA drafts within a week, so that they could be formally signed on September 17.
A three-day technical session on the 1,100-km-long Pakistan Stream Gas Pipeline project concluded on Thursday, after which a joint statement stated that significant progress had already been made.
The two sides agreed to expedite technical studies and surveys and also agreed to accelerate the planning phase, including field surveys, and inspections.
According to the joint statement, the countries also took to consideration the transfer of faulty RLNG from Karachi, design parameters, and technical features.
Appropriate arrangements will be made to connect the pipeline to the proposed underground gas storage projects in Sindh and to the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline crossing point in Multan, the statement added.
Back in July, there was a post-agreement progress meeting. This plan reflects the breadth of bilateral relations between Pakistan and Russia and will promote relations between the two countries.
The joint statement also said that the parties have agreed in principle to finalize the shareholder agreement for the project as soon as possible so that the company can be brought o to Pakistan.
It has already been agreed that most of the shareholding will be held by Pakistan. Both sides agreed that the project would lay the foundation for constructive and meaningful cooperation between Pakistan and Russia and promote this growing relationship.
Under the Head of Terms agreed on July 15, an 1100 km long gas pipeline will be laid from the Port Qasim area of Karachi to Lahore at a cost of $2.5 – $3 billion, and the project will be completed in 2023.
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