Pakistan, Qatar Sign LNG Deal

Pakistan on Wednesday signed a long term agreement with Qatar to import LNG.

The deal was signed during Prime Minister Nawaz Sharif’s ongoing two-day visit to Qatar. Pakistani oil minister Shahid Khaqan Abbasi and chairman of Qatargas Board of Director Saad Sherida Al Kaabi signed the agreement at a ceremony at Diwan e Emiri, reported Associated Press of Pakistan (APP).

As per the agreement Qatargas will supply fuel to Pakistan State Oil (PSO) from 2016-2031. The price for each LNG cargo in a particular month has been agreed at 13.37 percent of Brent where Brent value is average of the preceding three months. Qatargas will supply 3.75 million tonnes per annum (MTPA) of LNG to PSO. 

Last month, Pakistani cabinet’s Economic Coordination Committee (ECC) finally gave PSO to sign the long term LNG deal with Qatar.

Pakistan has been facing shortage of 600 mmcfd natural gas and the LNG deal could ease the situation to a great extent.