Pakistan and Russia have finalised an agreement under which Moscow will lend Islamabad US$2 billion to lay a pipeline that will transport LNG from Karachi to Lahore. In return, Russian companies will be awarded the contract to build the pipeline.
The formal agreement between the two sides is expected to be signed next month.
Pakistan will also sign a commercial agreement with a Russian firm that Moscow will identify as its preferred contractor to build the 1100 km pipeline.
Pakistan is working on two pipelines to transport re-gassified LNG from Karachi to the northern parts of the country. The first pipeline will connect Gwadar Port to the main natural gas pipeline hub in Nawabshah, while the second will connect Karachi to Lahore.
Edited from various sources by Elizabeth Corner
Sources: The Express Tribune, Pakistan Today