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Russia has agreed to build and possibly run a planned natural gas link in Pakistan as President Vladimir Putin seeks to bolster the country's influence in the Middle East and Asia, according to Bloomberg.
The countries signed an intergovernmental agreement for a pipeline that would connect liquefied natural gas terminals in southern Pakistan with its energy-hungry north in 2019 to 2020, the Russian Energy Ministry said in a statement Friday. A unit of Russia's Rostec State Corp. will manage the project and will invite international investors, including China, to participate, the report says.
While Russia and Pakistan have been discussing gas-pipeline projects for more than a decade, the deal comes as Putin seeks allies in Asia and the Middle East in an effort to break out of international isolation caused by the Ukrainian crisis. Russia's military buildup in Syria has contributed to tensions, especially with the U.S.
"Construction of the North-South pipeline brings trade and economic cooperation of Russia and Pakistan to a new level," Russian Energy Minister Alexander Novak said in the statement. He and his Pakistani counterpart Shahid Khaqan Abbasi signed the accord in Islamabad in the presence of Prime Minister Nawaz Sharif, the statement said.
Read alsoOusted Assad major threat to GazpromThe Russian side is studying funding from Russia and China development banks for the link, the statement said without elaborating. A project company, set up by potential investors, will own and run the 1,100 kilometer (684 mile) pipeline over 25 years, according to the statement.
Read alsoRussia gas talks with China sluggishThe link would ship as much as 12.4 billion cubic meters of gas per year, which is about 30% of Pakistan's current consumption.