Pakistan in Talks with Russia, Malaysia Among Others to Import LNG

Pakistan is in talks with a number of countries to buy LNG, the country’s oil minister Shahid Khaqan Abbasi said October 24. "We have started talks with Russia, Malaysia, Oman, Azerbaijan, Algeria and other African countries for LNG import to ensure sufficient supply of gas to meet local demand," the minister said at the opening ceremony of the compressors revamp project at Pakistan Petroleum Limited's flagship Sui gas field, Business Recorder reported.

He said gas accounts for half the country's total energy mix and the government is planning to increase LNG import further in coming years. 

Two Pakistani firms have signed long term LNG contracts with Qatar this year. Qatargas will supply 3.75mn mt/yr to Pakistan State Oil (PSO) from 2016-2031. The price for each LNG cargo in a particular month has been agreed at 13.37% of Brent where Brent value is average of the preceding three months. Qatargas will also supply Global Energy Infrastructure 1.3mn mt/yr for 20 years, with an option take up to 2.3mn mt/yr, expected to start in 2018 by Qatargas.

Shardul Sharma