U.S. sanctions on Iran are also a major obstacle to most gas pipeline projects in the region, with Iran`s offshore advance to Pakistan and India estimated at $10 billion, according to Pakistani media. The agreement to facilitate economic cooperation between the two countries follows a 2015 agreement, under which it was decided to build a gas pipeline of more than 1,000 km linking Karachi to Kasur. At the third level, until the second quarter of 2020, all compressor stations will be commissioned to bring the pipeline to its full capacity of 12.4 billion cubic meters per year. The two countries are making rapid progress in improving bilateral relations by signing a series of critical agreements in the economic and defense sector this year. The mou is the latest in a series of energy-related agreements between Pakistan and Russia, former enemies of the Cold War, that have grown closer in recent years. The 1,100-kilometer pipeline, with a capacity of 12.4 billion cubic meters per year, will connect Karachi`s liquefied natural gas (LNG) terminals to those in Lahore, Radio Pakistan reported. Pakistan`s oil ministry said it would take three to four years to complete the pipeline, which would include « other aid projects such as underground gas storage, desalination and other energy projects. » Russia and Pakistan have signed a modified agreement for the construction of a 1122-kilometer-long, highly fermented liquefied natural gas pipeline linking Karachi (Qasim Port) to Kasour (Punjab), which marks the beginning of a new era of strategic relations between the two countries #EmergingPakistan pic.twitter.com/ieTFNU1Zsk The agreement signed today is an extension of the agreement signed by the two countries in September 2018 for an offshore gas pipeline project. Now, in the revised model, Pakistan has money from the Gas Infrastructure Development Cess (GIDC) and would therefore contribute 74% of the capital and Russia will make 26% of the expenditure. However, Russia will provide all imported equipment for the pipeline. The Russian-Pakistani Technical Committee held its first meeting in Islamabad from 16 to 18 November 2020 on mutual cooperation for the development of a gas pipeline project. The energy ministries of the two countries were present at the meeting.
The project has been important for Pakistan, as it is facing an energy crisis and the signing of the new agreement aims to mitigate its deterioration of gas shortages. The 1100 km pipeline will connect liquefied natural gas (LNG) terminals from the port of Karachi in southern Pakistan to the northern city of Lahore. The discussions aimed to finalize the broad contours and parameters of the project to build a high-pressure gas pipeline from Port Qasim (Karachi) to Kasur (Punjab) for the transport of regassed liquefied natural gas (RLNG), in order to cope with the gas shortage due to the growing demand of industrial and domestic consumers. Under the agreement, Russian companies will support the supply of liquid natural gas (LNG) through a 1,122 km high-pressure pipeline linking Karachi Port Qasim to Kasur in Punjab province. The two countries signed a protocol on the revised structure of the agreement, with different conditions. Islamabad had already signed an intergovernmental agreement with Russia to discuss importing liquefied natural gas (LNG) into Pakistan, one of the world`s fastest-growing LNG markets. . .
.