Pakistan and Russia on Thursday successfully concluded the talks and signed the Heads of Terms (HoT) and Shareholders Agreement (SHA) on the country’s most strategic project of 1,100-kilometer Pakistan Stream Gas Pipeline (PSGP) from Karachi to Kasur. The total cost for this project is estimated to be $2.5 billion.
Both sides signed them after altering some terms for more clarity.
Russia will have 26 percent shares in the project but will have no sovereign guarantee from Pakistan on the rate of return.
Pakistan will be having 74 percent shares in the project.
The Managing Director (MD) of Special Purpose Company (SPC) will be appointed from the Pakistan side.
After four days of talks, both the sides agreed to hold joint technical sessions within 30 days to exchange information on the project implementation status, set technical specifications and prepare a project roadmap after the signing of the SHA.