Pakistan,Russia to discuss $2 b LNG project

Pakistan and Russia are set to meet in Moscow today to discuss the course of action on implementing the 2billion dollars LNG project after the United States imposed sanctions against the Russian energy firm designated to build the pipeline.

Pakistan Petroleum Minister Shahid Khaqan Abbasi will lead the delegation, reports The Express Tribune.

Russia had signed a Government to Government (G2G) deal with Pakistan to lay the 2 billion dollars North South Pipeline from Karachi to Lahore to transport imported LNG and nominated RT Global to implement the project.

Under the agreement, Pakistan would provide 15 per cent equity whereas 85 per cent funding would be provided by the Russian firm.

The first phase of the project is expected to conclude by December 2017.

Pakistani side will also negotiate a LNG supply deal with Russian firm Gazprom.

During the talks, Russian side would update the Pakistani side about the sanctions imposed against RT Global.

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Russia could replace RT Global with some other company which was not facing US sanctions.