Pakistan, Russia Expected to Sign a Commercial Agreement on NSGP Project – Research Snipers

Pakistan, Russia Expected to Sign a Commercial Agreement on NSGP Project

In order to construct a 1,100-kilometre North-South Gas Pipeline (NSGP) within 30 days, Pakistan and Russia will sign a commercial agreement.

The government is planning to take action for the NSGP project to make sure that 1.2 billion cubic feet of Regasified Liquefied Natural Gas (RLNG) per day are transported to Lahore from Karachi.

As reported, the work on this project will start in 6 months’ time. The Petroleum Division collaborated with Russia in which it retained 51 to 80% of equity. A huge debt portion will be funded from the funds of Gas Infrastructure Development Cess (GIDC). Land acquisition has already begun. In September, a final meeting will take place between Pakistan and Russian officials to finalize the NSGP project’s fate.

As the Supreme Court took a decision regarding the Gas Infrastructure Development Surcharge (GIDS), the Petroleum Division started considering different options to make sure of the NSGP’s construction. This is because the GIDC funds can only be used in gas infrastructure projects. If the government is not able to start any gas infrastructure project in the next 6 months, the GIDS Act will be canceled according to the orders of the apex court on GIDC.

The Petroleum Division took advice from the Law Division about the GIDC. This includes the time limitations, expandability, billing, and refund policies for consumers.

Back on 25th October 2015, an agreement was signed between Pakistan and Russia to develop the NSGP from Karachi to Lahore.

via PakistanToday

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