Explanation

In a major development, the three-day Pakistan and Russia talks on 1,122-km high pressure RLNG pipeline from Karachi (Port Qasim) to Kasur (Punjab) ended with amendment in the Inter-Governmental Agreement (IGA) heralding the pavement for new era of strategic relationship between the two countries. Both the sides had earlier signed an Inter-Governmental Agreement (IGA) in 2015 when Russia was to erect the project with 100 percent financing, but after the GIDC verdict by the Supreme Court, and availability of liquidity with Petroleum Division, the Inter-Governmental Agreement has been amended and the North South Gas Pipeline Project (NSGPP) has been renamed as Pakistan Stream Gas Pipeline Project (PSGPP) with 26 percent equity share from Russia. “Russia has not adopted to keep 49 percent shares in equity offered by Pakistan, but decided to have its equity at 26 percent. It means Pakistan will be having 74 percent equity in the project. The pipeline project will be backed by agreement based on take and pay mode with no sovereign guarantee,”