Pakistan and Russia have signed a protocol to advance cooperation in mega energy projects and oil and gas trade as part of a broader infrastructure and development initiative. This agreement follows the ninth meeting of the Pakistan-Russia Inter-Governmental Commission on Trade, Economic, Scientific, and Technical Cooperation.
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Key aspects of the protocol include:
- Pakistan Stream Gas Pipeline (PSGP): Russia has been invited to invest in this significant project, which is part of a comprehensive infrastructure program aimed at ensuring sustainable gas supply at affordable prices.
- Energy Cooperation: Both sides agreed to continue joint exploration activities and oil and LNG supply initiatives, while also exploring offshore drilling opportunities in Pakistan. Gazprom Neft expressed interest in collaborating with Pakistani oil and gas firms like OGDC, PPL, and Mari Petroleum.
- LNG Supply: Russia’s Gazprom and Novatek showed interest in supplying LNG from the Portovaya LNG plant and exploring long-term supply agreements from the Ust-Luga gas processing complex. Pakistan’s decision on LNG purchases will follow the conclusion of an ongoing energy demand and supply study, to be completed by the third quarter of 2025.
- Hydropower Collaboration: Pakistan and Russia identified five key hydropower projects for collaboration, including the Diamer Bhasha (4,500 MW) and Dasu-2 (2,160 MW) projects. Both nations also supported Russian participation in the Azad Pattan hydropower project (700 MW). Russia will assist Pakistan in formulating a water and energy resource master plan, with an emphasis on efficient water management.
- Mining and Mineral Exploration: Russian companies like Rosgeo expressed interest in collaborating with Pakistan in geology, mineral exploration, and diversification of Pakistan’s mineral resource base.
- Oil and Gas Technology: The Russian Institute of Oil and Gas Technological Initiatives (INTI) will engage with Pakistani companies to facilitate access to Russian oil and gas equipment, with online meetings planned for early 2025 to discuss potential cooperation agreements.
- Coal and Energy Products: Russia aims to export coal and coal chemical products to Pakistan, with further details on potential customers and supply requirements to be exchanged by mid-2025.
This protocol reflects the growing economic and strategic ties between Pakistan and Russia, enhancing cooperation across energy, mining, hydropower, and other sectors. The discussions highlight both countries’ commitment to fostering long-term partnerships in key industries.
