Islamabad: Pakistan is considering a billion-dollar LNG pipeline deal with Russia. According to reports, the coalition government led by Pakistani Prime Minister Shahbaz Sharif is exploring the possibility of a billion-dollar deal with Russia to build a liquefied natural gas (LNG) pipeline. This strategic move has been taken after Russian President Vladimir Putin’s meeting with Shahbaz Sharif during the Shanghai Cooperation Organization (SCO) summit. Pakistani media claims that Putin himself has made this offer to Pakistan.
Attempt to connect India as well
It is being claimed that Putin proposed the construction of an LNG pipeline that would pass through Iran to Pakistan and potentially connect to India. During their discussion, Prime Minister Shahbaz emphasized the possibility of increasing bilateral trade between Pakistan and Russia, and expressed his desire to work closely with President Putin to further strengthen their relations. Currently, the bilateral trade between the two countries is between $800 and $900 million annually, and there are plans to significantly increase this figure in the coming years.
Pakistan studying feasibility
Senior Pakistani officials revealed that various ministries are conducting preliminary studies. Pakistani Petroleum Minister Musadik Malik has been tasked with evaluating viable options. These efforts also include considering the sanctions imposed by the United States on both Russia and Iran. The concerned ministries are also assessing ways to increase trade to $20-$25 billion per year, taking into account regional and global dynamics.
Pakistan sees opportunity in Ukraine war
Several routes are being considered for the LNG pipeline, as previous attempts for regional energy connectivity, including power and gas projects, have not succeeded despite significant publicity in the past decades. The Ukraine war has led to a decline in Russia’s trade with European countries, which has prompted Moscow to seek new markets, including South Asia. This proposed LNG pipeline project revives the history of cooperation between Islamabad and Moscow.
