A USD 3.2 billion natural gas pipeline from Iran to India via Pakistan is showing more promise with the expectation that Pakistan and Russia will sign a memorandum of understanding (MOU) in Moscow the second week of September allowing studies for the pipeline to proceed. The MOU would allow Russian energy firm OAO Gazprom to launch a pre-feasibility study on the construction of the pipeline into or across Pakistan and to negotiate with international financial institutions for monetary support for the project. It also says that under a confidentiality agreement, Pakistan would facilitate the efforts of the Russian firm and provide available information in the areas of interest regarding the oil and gas sector. Pakistan, in turn, stands to benefit from the receipt of a portion of the line’s natural gas to fuel its program of converting diesel vehicles to compressed natural gas (CNG)â”; a programme in which Gazprom would assist.
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