The gas pipeline project in Pakistan, known as the "North-South", in which Russia is involved, has changed the name and the composition of the shareholders, according to the protocol on amendments to the relevant agreement between Russia and Pakistan, which was signed back in 2015.
Thus, a consortium of Russian investors will receive a stake of at least 26% in the Pakistan Stream gas pipeline project (formerly "North-South"). And RT Global Resources and its affiliated structures, which originally planned to participate in the project, will be replaced in the agreement by a company nominated by the competent authority of the Russian side, to be established by the Federal State Unitary Enterprise "Center of Operational Services" of the Russian Ministry of Energy, LLC "Eurasian Pipeline Consortium and "Pipe Metallurgical Company" of businessman Dmitry Pumpyanskiy.
It is noted that the Pakistani party will have a controlling stake in the project. The parties will set up a special purpose company, which will be owned by Russia at least 26%. The document says that the Russian party will contribute to the payment for its share either in money or in the form of services and products used for the project's implementation.
The issues related to the special company will be stipulated in the shareholder agreement to be agreed within 60 days after signing the protocol on the amendments to the agreement.
The parties also agreed that during the construction of the pipeline the Russian side will have a casting vote in the selection of contractors, as well as make decisions on design, engineering, supplies and construction of the project.
About the project
An intergovernmental agreement on the construction of the North-South gas pipeline with a length of about 1,100 km and a capacity of 12.4 billion cubic meters of gas per year was signed between Russia and Pakistan in October 2015. The parties were to sign commercial agreements in 2016, and the facility was planned to be commissioned by 2018, but the terms of the project have been postponed several times.
GSV "Russia - Islamic World"
Photo: Creative Commons
Based on materials from TASS