Pakistan, Qatar to ink LNG deal

Pakistan will reportedly sign a long-term deal to import liquefied natural gas from Qatar this week.

Under the 15-year deal, Qatar will supply 3.5 million tonnes per annum of LNG to Pakistan, Reuters reported on Monday.

A report by Pakistan Today says that the country negotiated a “very attractive price” of $5.35/MMBtu as compared to $$6.56/MMBtu which was agreed in 2013, due to declining oil and gas prices.

Pakistan’s Economic Coordination Committee recently approved Pakistan State Oil’s 15-year LNG sale and purchase agreement with Qatargas.

On a proposal of Ministry of Petroleum & Natural Resources, the Committee “approved signing of the LNG sale purchase agreement (SPA) with Qatargas for a period of 15 years and authorized the PSO to execute the SPA under government to government arrangement after completing the due process,” ECC said.

It was reported in November last year that PSO agreed to import 1.5 million tonnes of LNG per year under the long-term deal from the world’s largest LNG producer.

Pakistan began importing LNG in March 2015 in order to replace conventional fuels to fire its power stations.

The country is importing chilled gas through Excelerate Energy’s 150,900 cbm FSRU Exquisite, which is chartered by Engro Elengy, located at the Port Qasim in Karachi.

The Port Qasim facility received 17 cargoes or one million tons of LNG by the end of December.

LNG World News Staff