As a goodwill gesture the Russian side has once again accepted the conditions provided from the Pakistani side for the North-South Gas pipeline. This time Russian Ministry of Energy has offered TMK and ETK with its state owned company Federal State Unitary Enterprises (FSUE).
Previously the officials from Pakistani side had sought inclusion of ETK in place of TMK stting that the top man at TMK, Pumpyansky, is on the watchlist of US. In response the Russian MoE extended the structure with ETK as was demanded. But after some time, sense prevailed in the Pakistani side with inputs from international law firms which opined that TMK is a better structure for the project.
Moreover Russia has also agreed with the proposal of Pakistan on equity structure. Following the GIDC verdict by the Supreme Court, Pakistan wants to keep majority equity share in the project and it has proposed that Pakistan will be having 51 percent shares and Russia 49 percent.
The 1,100 kilometers long North-South gas pipeline was to be laid with a diameter of 42 inches with capacity to transport 1.2 billion cubic feet RLNG per day. Now Pakistan wants to increase its capacity to transport RLNG of 1.6 bcfd with a diameter of either 52 inches or 56 inches. The Pakistan side has estimated the project’s cost at $2.25 billion.
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