Pakistan Exploring Potential LNG Pipeline Deal With Russia

The federal government is exploring a multi-billion-dollar deal to meet its energy needs by potentially seeking an LNG pipeline deal with Russia. This comes after Russian President Vladimir Putin met with Prime Minister Shehbaz Sharif at the recent SCO summit and offered to construct an LNG pipeline from Iran to Pakistan, and then to India. Petroleum Minister Musadik Malik has been tasked with conducting a study to find viable options that consider US sanctions on Russia and Iran, reported a national daily. Currently, Pakistan and Russia’s bilateral trade ranges from $800 to $900 million annually, with plans to significantly increase this figure to $20-$25 billion per year. Various routes for the proposed LNG project are under consideration. Additionally, Pakistan is looking to enhance trade ties with Azerbaijan, whose president is scheduled to visit Islamabad soon. In 2015, Russia and Pakistan agreed to build a 1,100-kilometer pipeline to transport LNG from Karachi to power plants in Punjab. The pipeline’s capacity is 12.4 billion cubic meters annually, with the potential to increase to 16 bcm. Almost a decade after no progress, Pakistan now wants to proceed with the Russian LNG project for optimally managing its domestic energy needs.