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Third day of talks on PSGP: No sovereign guarantee for profit, Pakistan tells Russian team


July 15, 2021
ISLAMABAD: Pakistan will not extend to Russia the sovereign guarantee against 26 percent shares in Pakistan Stream Gas Pipeline Project (PSGP). However, it has extended assurances to Russia which are enshrined in the amended Inter-Government Agreement (IGA). Pakistan will be having 74 percent shareholding and Russia 26 percent.
This was the essence of the third day of talks between Pakistan and Russian excerpts on the project of paramount importance. However, the Oil and Gas Regulatory Authority (OGRA) will determine the tariff of the pipeline. The regulator will include in the tariff the capacity charge and usage charge to bear the fixed and variable expenses. Both sides agreed to form a Special Purpose Company (SPC) to run the Pakistan Stream Gas Pipeline. The CEO and MD of SPC would be from Pakistan, a senior official who was part of the talks told The News. ....

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