The existing gas infrastructure of Pakistan lacks capacity to transport additional large volume of gas supplies from Southern to Northern regions of the country. Therefore, keeping in view the expected additional gas supplies in near future, Ministry of Petroleum and Natural Resources has planned to undertake the laying of gas pipeline from Karachi to Lahore under the title “North-South Gas Pipeline Project”.
The ECC in its meeting held on 10th January 2015 has approved the North-South Gas Pipeline Project (Project) under Government-to-Government arrangement.
The Project will be implemented on Build Own Operate and Transfer (BOOT) model with Russia under Government to Government Agreement.
- The Government of Pakistan and the Russian Federation entered into Government to Government Agreement on the Cooperation for the Development of North-South Gas Pipeline Project on 16th October 2015 at Islamabad. Russian side submitted the initial Commercial proposal in November, 2016, which is under consideration by the Price Negotiation Committee (PNC) constituted by ECC of the Cabinet.
- The BOOT Contract terms are under negotiation between nominated entities.