Pak Stream Gas Pipeline parleys continue on positive trajectory

ISLAMABAD: Pakistan and the Russian Federation continued to hold negotiations to build the North-South gas pipeline, now Pak Stream Gas Pipeline for which the two sides signed an Inter-Governmental Agreement in 2015.

The agreement envisages laying of a 1,100km long pipeline to carry 1.6bcfd gas from Karachi to Lahore.

The two countries are currently holding the first session of meaningful negotiations over the shareholders agreement of the Pak Stream Gas Pipeline.

The Pakistani team was led by Dr Arshad Mehmood, secretary of the Petroleum Division, Syed Zikria Ali Shah, managing director of Inter-State Gas Systems and other officials of the Petroleum Division.

Moreover, the officials from AG Office, Law Division, Foreign Office and Finance Division also attended the session.

Vladimir Shcherbatykh, general director of Pak-Stream Ltd is heading the Russian side with other officials from the Russian delegation, which comprised financial and technical experts from the Russian government and allied entities.

It is highlighted that any negotiations involving a project of such magnitude, including financial, technical and legal details requires time, understanding between the parties and arriving on mutually beneficial consensus.

The Pak Gas Stream Pipeline project is a strategic project, which has made more progress in the last four months than the preceding five years.

A testament to that are the head of terms agreement that was signed in July and the technical parameters that were arrived at in August this year.

Both parties have made substantive progress on the finalisation of the shareholders agreement in a collaborative manner, which is an important document for which multiple negotiation sessions are planned.

The Russian side appreciated the progress made and has shown confidence in the negotiations, as they are going as per the expectations of both sides. Pakistan and Russia reaffirm their commitment to the project.