On May 28, Russia and Pakistan have signed an agreement to build the North-South gas pipeline, also known as the Pakistan Stream. The document signed by Russian Energy Minister Nikolai Shulginov and Pakistani Ambassador to Russia Shafkat Ali-Khan allows to begin in the near future the construction of the pipeline, according to the Russian Ministry of Energy.

“The signing of this protocol will allow our companies to begin the realization of the project in the very near future, thereby helping the Pakistani side to strengthen its own energy security and increase the use of natural gas as an environmentally friendly source of energy,” Nikolai Shulginov claimed.

It is a strategically important project for Government of Pakistan, as energy shortage limits economic growth.

The project was implemented under the Government-to-Government agreement between Russia and Pakistan signed in 2015.

The pipeline will connect the LNG receiving terminals in the city of Karachi in the south of Pakistan with the city of Lahore in the north, where LNG-fueled power plants will be built. The pipeline of 1,100 kilometres will be laid with a diameter of 42 inches with capacity to transport 1.2 billion cubic feet RLNG per day. It will have 5 compressor stations.

In November 2020, the project was renamed from North South Gas Pipeline Project to Pakistan Stream Gas Pipeline (PSGP) Project.

Russia, Pakistan To Build New North-South Gas Pipeline