Four-day talks on PSGP successfully conclude: Deal done on $

Four-day talks on PSGP successfully conclude: Deal done on $2.5b gas pipeline with Russia


July 16, 2021
ISLAMABAD: In a major breakthrough, Pakistan and Russia here on Thursday successfully concluded the talks and signed the Heads of Terms (HoT) and Shareholders Agreement (SHA) on the country’s most strategic project of 1,100-kilometer Pakistan Stream Gas Pipeline (PSGP) from Karachi to Kasur. The project’s cost has been estimated at $2.5 billion.
All the heads of terms presented by Russia were altered to make them acceptable and for the sake of more clarity and then both sides signed them.
“Russia will have 26 percent shares in the project but will have no sovereign guarantee from Pakistan on the rate of return. Pakistan will be having 74 percent shares in the project, which is why the Managing Director (MD) of Special Purpose Company (SPC) will be appointed from the Pakistan side and Chief Operating Officer will be from the Russian side. The SPC will be responsible of running the PSGP,” one of the participants of the four-day talks told The News.

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