Sanctioned Russian company wins Pakistan gas pipeline contract

Pakistan gas pipeline: A key committee within the Pakistani government yesterday gave its approval to Russia’s RT-Global Resource to build the 1,100 km long North-South gas pipeline from Nawabshah in Pakistan’s central Sindh province to Kasur near Lahore on the country’s north-east border with India. The pipeline will be developed through a Build Own Operate and Transfer (BOOT) model  that will give the Russian company  ownership of the pipeline for the first 25 years of its operation. However, because  RT is currently on the West’s sanctions list, the Economic Coordination Committee (ECC) is now seeking legal advice to gauge the feasibility of  setting up a special purpose vehicle to develop the project.
The pipeline will run from, and is designed to transport Iranian gas from a second pipeline that runs from the southwestern port of Gwadar.
Russia has asked for guarantees that Pakistan will buy a minimum of 1.2bn ft³ of gas  a day.

Source: tribune