ISGS Managing Director Mobin Saulat confirmed that Pakistan and Russia will sign a $10 billion deal on September 27th in Moscow. The aim is to capitalize on the energy market of Pakistan.
The deal was finalized during the former Pakistan Muslim League-Nawaz (PML-N) government. The deal was between Pakistan’s Inter State Gas Systems (ISGS) and Russia’s energy tycoon Gazprom. On Wednesday a Pakistani delegation will arrive in Moscow to sign the deal. Gazprom will conduct the whole study to analyze how much cost & time will be required for the project.
Mr. Saulat said, “China-Pakistan Economic Corridor (CPEC) has now entered the industrialization phase and needs gas for duty and tax-free Special Economic Zones (SEZs). The offshore gas pipeline will meet energy needs of industries being set up in the economic zones along the CPEC route.”
The pipeline will connect Pakistan and Russia. The official said, “Strategically, it is a very important project as the two countries will come closer to each other. At the same time, Pakistan will gain access to the Russian market in order to boost its overall exports which remained stagnant during the five-year tenure of the PML-N government.”
Public Joint Stock Company Gazprom was nominated by Russia to implements the project and the Pakistani government has allowed the company to conduct a feasibility test at its own expenses.
Furthermore, ISGS is also working on a $10-billion Tapi gas pipeline that will connect the South and Central Asia. In March 2019, the construction work will start on the project. These projects will bring prosperity, economic stability and regional connectivity in Pakistan.