In a bid to supply liquefied natural gas (LNG) via a 120-kilometre pipeline from Jalandhar to Jallo, India and Pakistan are likely to ink the first ever bilateral agreement.
The pipeline is to go through Wagah border and the contract is for a limited period of five years, said the media report.
Gas Authority India Limited (GAIL) will lay a 110-km pipeline from Jalandhar to Wagah via Amritsar and Pakistani Inter State Gas Services Company will lay a 10-km pipeline from Wagah to Jallo, on the outskirts of Lahore.
The agreement will be finalized between the two countries after negotiations on gas price and security of payments are concluded and the project to supply gas to Pakistan will be executed in 18 months.
"Given the delicate relationship between the two countries, GAIL wants the immediate closure built into the gas supply contract. We expect the contract to go through as Punjab chief minister Shahbaz Sharif is pushing for gas supply with his brother Pakistan Prime Minister Nawaz Sharif," a senior official told media.
Moreover according to the contract India will supply 5 million cubic metres of lean gas containing only methane daily to Pakistan at a pressure of 50 kg per square centimetre in Wagah.