Rostec subsidiary wins Pakistan’s North-South gas pipeline project

Novak and Abassi sign North South gas pipeline deal 16-10-15In the first major deal between Pakistan and Russia in 40 years, Rosneft subsidiary RT-Global Resources been awarded the contract to build Pakistan’s 1,100 North-South gas pipeline from Lahore to Karachi, its parent company has announced, after Russia’s Energy Minister Alexander Novak and Pakistani Petroleum and Natural Resources Minister Shahid Khaqan Abbasi signed an intergovernmental agreement today.The pipeline will link the port of Karachi’s LNG terminals to the north of the country and is expected to take 42 months to complete.
The project will be built in accordance with the BOOT (Build Own Operate Transfer) model; RT-Global Resources will own and operate the pipeline for 25 years and recoup its investment through gas transit fees. It will then become the property of the Pakistani government.
This is the second significant chunk of overseas investment that Pakistan has secured this year. In April, China-Pakistan Economic Corridor (CPEC), a 3,000km network of roads railways and pipelines running from Xinjiang to the port of Gwadar up the coast from Karachi.

Source: ITAR-TASS