QP inks LNG supply deal with Pakistan’s PSO
Qatar Petroleum has secured a new long-term deal for the delivery of liquefied natural gas (LNG) to Pakistan.
The company said on Friday it has entered into a sale and purchase agreement (SPA) with Pakistan State Oil Company (PSO) for the supply of up to 3 million tons per annum (MTPA) of LNG.
Under the 10-year agreement, LNG deliveries to Pakistan will commence in 2022 and continue until the end of 2031
Commenting on the agreement, the Minister of State for Energy Affairs, the president and CEO of Qatar Petroleum, Saad Sherida Al-Kaabi said, “With a well-established gas market and distribution system, Pakistan is a strategically important market for Qatar LNG. We are encouraged by Pakistan’s exceptional growth and excellent economic potential as well as by the prospect of it being one of the world’s fastest-growing LNG markets.”
Pakistan currently has two operational LNG receiving terminals, namely the Engro LNG Receiving Terminal and Pakistan GasPort LNG Receiving Terminal, both of which, utilize floating storage and regasification units moored in Port Qasim.
There are a number of additional terminals currently under consideration by various private sector players in the country.
This is the second such agreement signed between Qatari and Pakistani entities since 2016 when Qatargas signed a long-term agreement to supply PSO with 3.75 mtpa of LNG. The latest agreement raises the total of long-term LNG supplies from Qatar to Pakistan to 6.75 mtpa.