Russia provides structure worth $2 Billion for North-South Gas Pipeline

The agreement is most likely to be concluded in March 2020 on the technical and commercial grounds.


The North-South Gas Pipeline Project proposed by Russia stayed under doldrums and met challenges. Pakistani government had reservations particularly with the ROSTEC Company being a part of the partnership project, as it was under sanctions by the US Government. Pakistan couldn’t afford such partnerships as it was already under the FATF lens.

  • $2b worth partnership implemented under the Ministry of Energy of The Russian Federation:

Pakistan’s reservations have been addressed as the Russian Minister for Energy informed about the replacement of ROSTEC with Eurasian Pipeline Consortium and Federal State Unitary Enterprise (FSUE). After 4 years of delay, the project is finally on the road to implementation.

A senior representative from the Petroleum Division Pakistan has confirmed it. The agreement is most likely to be concluded in March 2020 on the technical and commercial grounds.

The established arrangement of Sui Northern Gas lacks volume to transport gas to other regions of the country. Thus, keeping in view the estimated additional gas supplies in near future, the Ministry of Petroleum and Natural Resources has planned to lay a gas pipeline from Karachi to Lahore under the title “North-South Gas Pipeline Project”.

82% of the project would be implemented by the Russian Government. The association of Ministry of Energy of Russian Federation and Eurasian Pipeline Consortium ‘LLC’ in JV North-South Gas Pipeline (Pvt) Ltd worth $2bn, as sanction free entities is a progressive step towards the future of Pakistan and Russian strategic partnership.

The ECC, in its meeting held on 10th January 2015, accepted the North-South Gas Pipeline Project (Project) under state-to-state level planning.

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