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Pak's changes in structure of gas pipeline project disappoint Russians

The Business Guardian

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March 08, 2024

The Pakistan Stream Gas Pipeline project has been marred by a series of changes and a lack of progress, much to the disappointment of Moscow. Amid U.S. sanctions on Russian entities, Pakistani officials have been struggling to maintain a consistent structure for the project and make headway on the commercial deal, as reported by The Express Tribune.

Pak's changes in structure of gas pipeline project disappoint Russians

This endeavor was launched with the aim of constructing a liquefied natural gas (LPG) pipeline stretching from Karachi to Lahore, with the primary goal of addressing gas shortages in the Punjab province.

In their pursuit of a longterm oil deal, Pakistani officials embarked on a visit to Russia on October 10, 2023. The Pakistan Stream Gas Pipeline project was also on the agenda for discussion. However, it appears that their efforts faced a significant setback as the Russians grew increasingly frustrated with the continually changing nature of the pipeline project. In fact, it got to a point where they refused to engage in discussions about it, as reported by The Express Tribune.

At the project’s inception, Russia had nominated RT Global to oversee its completion, while Pakistan had designated the state-owned Inter State Gas Systems (ISGS) for the task. Unfortunately, when the U.S. imposed sanctions on RT Global following Russia’s nomination, the company withdrew from the project, resulting in a standstill for the North-South Gas Pipeline project, as per The Express Tribune.

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