19 Oct 2015 10:00

Gazprom to take part in talks over LNG supplies from Russia to Pakistan

PYATIGORSK. Oct 19 (Interfax) - Gazprom will take part in talks over the supply of liquefied natural gas (LNG) from Russia to Pakistan, Russian Energy Minister Alexander Novak told reporters on Friday.

"We [and Pakistan] also discussed the possibility of liquefied gas shipments to Pakistan," the minister said, speaking about the intergovernmental agreement on the construction of a gas pipeline in the country that was signed earlier. He said Pakistan is interested "in expanding supplies of LNG in general, including Russian [LNG]."

"We will hold additional negotiations on this score," the minister said, adding that Gazprom will be involved in these talks.

Russian Energy Minister Alexander Novak and Pakistan's Petroleum and Natural Resources Minister Shahid Khaqan Abbasi have signed an intergovernmental agreement on the construction of the North-South gas pipeline from Karachi to Lahore, Russia's Energy Ministry said on October 16.

The project will be carried out by RT-Global Resources, a division of Russian state corporation Rostec. The route of the pipeline is now being surveyed and design and engineering work is underway.

The 1,100-km pipeline with capacity to carry up to 12.4 billion cubic meters of gas per year will connect the liquefied natural gas (LNG) terminal at the Karachi port in southern Pakistan to the city of Lahore in the northern part of the country.

Construction is underway on an LNG regasification terminal in Karachi. Power plants will be built in the northern part of the country and they will be supplied with gas by the Karachi-Lahore pipeline. In addition, Chinese companies are building another major gas pipeline, from Gwadar to Nawabshah, that will be connected to the Karachi-Lahore pipeline.

The Karachi-Lahore pipeline is the first joint project between Russia and Pakistan in a long time to be carried out on the basis of an intergovernmental agreement. The project is expected open up a new market for Russian companies and opportunities to carry out new energy infrastructure projects in Pakistan, provide orders for Russian manufacturers and make it possible to boost Russia's non-resource exports.