The government led by Prime Minister Shehbaz Sharif is exploring a significant LNG pipeline agreement with Russia to tackle Pakistan’s rising energy demands.
This development comes after Russian President Vladimir Putin suggested building an LNG pipeline through Iran to Pakistan and then linking it to India during his meeting with PM Shehbaz at the Shanghai Cooperation Organisation (SCO) summit.
During their discussion, the prime minister highlighted the potential to boost trade between the two countries and expressed his intent to strengthen ties with President Putin.
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Sources reveal that various ministries are working on preliminary tasks, with Minister for Petroleum Musadik Malik tasked with conducting a study to present viable options, considering the US sanctions on Russia and Iran.
Different routes for the LNG pipeline are under consideration, as previous regional energy connectivity efforts have not materialized despite significant promotion.
In 2015, Pakistan and Russia had agreed to build a 1,100-kilometre pipeline to transport LNG from Karachi to power plants in Punjab. However, US sanctions pose a significant challenge to this new LNG project, similar to the Pak-Iran gas pipeline project, which has stalled due to fears of US repercussions.
To move forward with the Russian LNG project, Islamabad might need to adopt a strategy similar to Turkey’s, which managed to secure a commercial agreement with Russia without facing adverse effects from US sanctions.
