RUSSIA SIGNS LARGEST CONTRACT IN ENERGY SECTOR IN THE HISTORY OF BILATERAL RELATIONS

Founder Editor Tazeen Akhtar..

Islamabad - The Minister of Energy of the Russian Federation Alexander Novak visited Islamabad on October 15-16, 2015, where he held bilateral talks with the Minister of Petroleum and Natural Resources of the Islamic Republic of Pakistan Sh.H.Abbasi, and was also received by the Prime Minister of Pakistan Nawaz Sharif.

Details from Russian Embassy - During the talks the parties discussed in detail the prospects for Russian-Pakistani cooperation in the energy sector. A.Novak stressed that Russia is able to help Pakistan in the sectors of electricity generation and energy, has the appropriate specific skills, expertise and experience. Moscow, according to the Russian minister, is ready to render maximum assistance to Pakistan to resolve the chronic energy deficit adversely affecting the development of the country as a whole.

The Russian delegation also included representatives of the "Rostec" subsidiary company - "RT-global resources."

Following the visit, in the presence of the Prime Minister of Pakistan ministers of both countries signed an Agreement between the Governments of Russia and Pakistan on cooperation in the construction of the gas pipeline "North - South" from Karachi to Lahore.

The project assumes the maximum use of technologies, materials, equipment and products produced in Russia, involvement of Russian research, design and construction organizations.

The Pakistani Side, according to the document provides the granting of rights to use the land required for the project, and the implementation of research and work related to determining the route of the pipeline route.

The Agreement is valid for 25 years and provides the possibility of automatic renewal for five-year periods.

Our Staff Reporter adds - Prime Minister Muhammad Nawaz Sharif has said that the growing cooperation between Pakistan and Russia would help a great deal in fulfilling Pakistan’s energy requirements. The Prime Minister said this while meeting a Russian delegation led by Mr. Alexander Novak, Minister of Energy of the Russian Federation who called on the PM at PM House Islamabad, today.

This is the first such visit by a Russian Energy Minister to Pakistan in three decades. Both sides reviewed the overall state of bilateral energy cooperation between the two countries, the possibility of greater Russian investment in Pakistan’s Oil and Gas sector and exchanged views on the North South gas pipeline which would mark a new milestone in the bilateral energy cooperation between both countries.

During his call on the Prime Minister, the Russian Energy minister expressed the hope and satisfaction that his visit would pave the way for intensive energy cooperation between both the countries.

Later, the Prime Minister witnessed the signing ceremony of Inter-Governmental Agreement on the North South Gas Pipeline which aims to transport gas, with an additional capacity for LNG, from South to North Pakistan. The approximately $2 billion pipeline project traversing a distance of about 1,100 Kms is expected to be completed by 2018

Other members of the Russian delegation included Executive Director Mr. Kulikov S.A., General Director of RT Global Resources Mr. Korobov A.V. and other senior energy and technical experts. From Pakistan side, the meeting was attended by Minister for Petroleum & Natural Resources Mr. Shahid Khaqan Abbasi, Minister of State for Petroleum Mr. Jam Kamal, Special Assistant to PM Mr. Tariq Fatemi, Secretary Petroleum Mr. Arshad Mirza and other senior officers from Petroleum Ministry and PM Office.