Russia, Pakistan open talks on LNG project

Both Russian and Pakistani governments have started negotiations to resolve all open issues related to execution of sole liquefied natural gas (LNG) pipeline project by end of 2017. The sole project 'North-South Pipeline Project' Pakistan and Russia signed so far is facing difficulties for execution. The project which was scheduled to kickoff in 2016 can be postponed till year 2019, informed sources said.
The North-South Gas Pipeline project was signed between Pakistan and Russia in October 2015 to transport LNG from port city of Karachi to industrial province of Punjab in Pakistan. Sources said that Islamabad is still not agreed with RT-Global Resources (executing agency) on gas transportation tariff issue although Russian company decreased the tariff twice to win the project.
In new development, Russia's RT-Global Resource and Pakistan's Inter-State Gas Systems (ISGS) Pvt Ltd have started negotiations for implementation of the gas pipeline project.
The issue also came under discussion during the fifth session of the Pakistan Russia Inter-Governmental Commission on Trade, Economic, Scientific and Technical Cooperation which was held in Moscow on November 28-30, 2017. So far the issue of delivering gas from the ports of Karachi and Gwadar in the south of Pakistan to power plants and industrial gas consumers in Lahore in the north has still not been resolved. The 1,100km north-south gas pipeline will have the capacity of about 12 billion cubic meters of gas a year.
Earlier, Russian company RT Global, on which the US had imposed sanctions, was designated to implement the LNG pipeline project in Pakistan. However, in a revised plan, Russia has got a special purpose vehicle registered in Pakistan. This is a local company of RT-Global Resource that is dealing with the pipeline project.