Pakistan has once again started talks with Russia over the 1,040-kilometer Pakistan Stream Gas Pipeline (PSGP), reported a national daily.
The pipeline project, which is to be laid from Karachi to Kasur, has been facing hurdles in progressing. The final aim of the project is to assist with easing the increasing LNG demand in the country.
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The first day of bilateral talks discussed the structure of the pipeline, where the Russian side presented its pre-FEED (Front-End Engineering Design) studies for deliberation.
The two sides got into a disagreement over OGRA’s license to implement the project. The Pakistani side informed the meeting that OGRA’s current license was valid. However, the Russian side said that the license should be in the name of a Special Purpose Company (SPC), and accordingly, it has been acquired by the Inter-State Gas system. So they said that this company should be responsible for the implementation of the project.
Representatives of the gas companies shared their capacity details of handling the RLNG-I and RLNG-II pipelines projects, as well as their ability to maintain the operation as well.
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The talks will officially begin today and will conclude after three days. The contentious issue of the diameter of the pipeline will be decided at a later stage.
After these talks, Pakistan and Russia will be able to define the direction and parameters of the mega project. After the technical specifications are finalized, then the cost of the project could be determined, and then work can begin on project financing.
