Pakistan will discuss a long-term oil and LNG trading arrangement and the $3 billion Pakistan Stream Gas Pipeline (PSGP) with a Russian group arriving tomorrow.
A local newspaper ‘The News’ reported citing senior officials of the Energy Ministry, that an 80-member team will arrive in Pakistan on January 17 for three days of Inter-Governmental Commission meetings (IGC).
“Sardar Ayaz Sadiq will lead Pakistan’s IGC delegation. For the import of Russian oil and LNG on a GtG basis, both countries need first to negotiate the IGA (inter-governmental agreement) as had been finalized and inked in the case of the Pakistan Stream Gas Pipeline Project (PSGP), which was earlier called the North-South Gas pipeline project,” they said.
On February 24, 2022, former prime minister Imran Khan visited Moscow without finalizing the PSGP shareholding and facilitation deal. Both sides planned to sign the PSGP transaction during the Imran-Putin summit, but their experts disagreed on some shareholder agreement details.
The G7 countries currently restrict Russian crude oil at $60 per barrel and ban Russian oil ships. Moscow responded by banning oil sales to countries that joined a Western price restriction on its product.
During discussions, Pakistan must consider shipping costs, trader premiums, insurance, and payment.
However, the IGC promotes trade and investment in agriculture, energy, customs, industry, education, research and technology, information and communication technologies, communication, roads and postal service, railways, and finance. We were discussing Pakistan’s debt to Russia.
Both parties will discuss collaboration in electric power, hydropower, renewable energy, and oil and gas production.