Russian delegation arrives in Pakistan to discuss NSGPP

The Russian technical delegation had arrived in Pakistan on Monday for three days visit to discuss the North-South Gas Pipeline Project (NSGPP).

As per reports, Pakistan and Russia are expected to finalize an agreement to start work on the over $2 billion North-South Gas Pipeline Project (NSGPP) in the first quarter of 2021 calendar year.

The gas pipeline project has been revised upwards by changing its route and diameter. Pipeline on the new route between Karachi and Lahore will be around 1,700km long. Its transmission capacity was also enhanced from one to 1.6 billion cubic feet (bcf).

The current capacity for gas supply will be two bcf, which can increase up to three bcf in the next 10 years.

In October 2020, Special Assistant to Prime Minister Nadeem Babar stated that the government was compelled to show progress on the proposed pipeline till February 2021, in line with a directive of the Supreme Court in the gas infrastructure development cess (GIDC) case.

On August 14, 2020, the Supreme Court of Pakistan barred the government from using GIDC collection for any purpose other than gas infrastructure construction. After the SC’s decision on the GIDC, the government wants to keep majority equity share in the project and proposed 51 percent share for Pakistan, while Russia gets 49 percent, sources said.