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Business & Finance

Pakistan, Russia to initiate work on NSGPP from July

  • Its transmission capacity was also enhanced from one to 1.6 billion cubic feet (bcf).
  • The current capacity for gas supply will be two bcf, which can increase up to three bcf in the next 10 years.
Published January 4, 2021

Pakistan will initiate work on the North-South Gas Pipeline Project (NSGPP) with Russia from July.

“Yes, we are working on the pipeline with Russians,” Nadeem Babar, special assistant to the prime minister on petroleum, told Arab News. “The construction of the 1,100 km long pipeline that will transport 1.6 bcfd gas will start in July.”

The gas pipeline project has been revised upwards by changing its route and diameter. Its transmission capacity was also enhanced from one to 1.6 billion cubic feet (bcf). The current capacity for gas supply will be two bcf, which can increase up to three bcf in the next 10 years.

In October 2020, Special Assistant to Prime Minister Nadeem Babar stated that the government was compelled to show progress on the proposed pipeline till February 2021, in line with a directive of the Supreme Court in the gas infrastructure development cess (GIDC) case.

On August 14, 2020, the Supreme Court of Pakistan barred the government from using GIDC collection for any purpose other than gas infrastructure construction. After the SC’s decision on the GIDC, the government wants to keep majority equity share in the project and proposed 51 percent share for Pakistan, while Russia gets 49 percent, sources said.

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