Two Russian giants may invest in IP gas line, Steel Mills: BoI

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Two Russian giants may invest in IP gas line, Steel Mills: BoI

ISLAMABAD (October 17, 2010) : Two Russian industry giants are likely to invest in construction of Iran-Pakistan gas pipeline, and expansion in Pakistan Steel Mills Corporation, if Pakistan agrees to provide them sovereign guarantees. This was stated exclusively to Business Recorder by the Chairman of the Board of Investment (BoI), Saleem Mandviwalla.

The final decision to allow participation of the Russian companies in the mega projects of gas pipeline and steel mills would be taken during the visit of President Asif Ali Zardari in January 2011, he added. The President's January visit to Russia is being termed as significant in the background of Pakistani delegation's recent visit in September 2010.

The delegation, according to BoI chairman, had met with the chairman of Gazprom, Zarybezhneftgaz, who agreed to invest in the energy sector in Pakistan. During discussions, the two sides reportedly agreed to enhance co-operation in the energy sector. Gazprom showed interest in the construction of IP gas pipeline, and agreement is likely be signed in the coming visit of the President if the two sides agreed, Mandviwalla said.

Gazprom is a state owned company which has the capacity to build mega gas pipelines under sea and offshore. Another Russian company, Tyazhpromexport, has been requested to invest in expanding the production capacity of Pakistan Steel Mills Corporation and transform it into a profit generating entity.

Fuel and Energy - Pakistan - Two Russian giants may invest in IP gas line, Steel Mills: BoI