Russia to help Pak end energy crisis with $2-bn gas pipeline

Islamabad, June 29

Energy-starved Pakistan is likely to sign a $2 billion deal with Russia for laying a liquefied natural gas (LNG) pipeline from Karachi to Lahore, a sign of increasing ties between the Cold War-era adversaries.

The deal is expected to be signed next month during Prime Minister Nawaz Sharif’s visit to Moscow to attend a summit of the Shanghai Cooperation Organisation (SCO).

“We are trying to sign an LNG pipeline accord with Russia in a government-to-government arrangement during the visit of prime minister to Moscow,” Petroleum Minister Shahid Khaqan Abbasi was quoted as saying by The Express Tribune.

During the SCO meeting, Pakistan and India are expected to get permanent membership of the SCO regional forum.

The paper reported that in addition to financing the pipeline, Russia has also agreed to export LNG in a bid to help ease energy shortages in Pakistan and this issue will come up for discussion during the bilateral talks.

“The Russian side is very positive about helping Pakistan in tackling the energy crisis,” an official said. “It will start LNG exports in 2016.” The two sides have already signed an initial deal in the form of a protocol and finalised an agreement during earlier talks in Moscow. — PTI