Pak-Russia Likely to Decide Fate of 1,100km NSGP worth $2 Billion

Pak-Russia Likely to Decide Fate of 1,100km NSGP worth $2 Billion

ISLAMABAD: In a newly and welcoming development, Russia has provided a new structure for the much-trumpeted North-South Gas Pipeline Project (NSGPP) in a goodwill gesture. This shows how determined and committed Moscow is to developing strategic stakes in Pakistan.

Pakistan and Russia may take important decisions during the next month. This would include transportation of Regasified Liquefied Natural Gas (RLNG) from Karachi to Lahore by setting up a 1,100 kilometer (km) North-South Gas Pipeline (NSGP).

Previously, Pakistan has informed Russia regarding its reservations over ETK’s weak business credentials. Pakistan has also expressed concerns over ETK’s ability to carry out a project as big as NSGP. However, the Russian side has disputed Pakistan’s claims. It was seen that various business interest groups in Pakistan have also been lobbying in favor of ETK. The latest scenario shows that the Russian Ministry of Energy has offered TMK and ETK with its government-owned company Federal State Unitary Enterprises (FSUE).

Phase-I of NSGP is to be completed by December 2022 and phase-II is to be complete by December 2023. Currently, existing pipelines connecting Lahore with Karachi for the transportation of RLNG have been fully utilized.

It was revealed by the sources that Pakistan has recently allowed the setting up of more Liquified Natural Gas (LNG) in order to meet a fast-growing need for gas in Karachi and the rest of the country.

TMK, having a net worth of over $9 billion, is listed at the London Stock Exchange. It has reported profits of $1 billion. The financial and corporate rating firms, such as S&P and Moody’s, see TMK as having a positive track record of engagement with the US government. More importantly, it has never been subjected to any investigation or sanctions by the US government. These facts are publicly available and independently verifiable that can be relied upon.

Russian investment and involvement in the infrastructure across Pakistan can be seen as a positive change in the region. What are your thoughts on this?

 

 

Umer Atiq
IT Consultant and business analyst. Keeps an interest in the affair that impact business or society.