Pakistan to Import 75,000 tn of LPG from Iran

Pakistan has agreed to import LPG from Iran, according to local Pakistani media outlet.

All Pakistan LPG Distributors Association has signed a deal with National Iranian Gas Company pertaining to import of 75,000 tonne LPG within a year, Dunya News reported Tuesday. Every month, Pakistan will import 6,000 tons of LPG.

Association’s president Irfan Khokhar stated that price of imported LPG would be in lines with price in the local market.

This is the second major energy deal that Pakistan has signed this year. In February, Pakistan penned a long term agreement with Qatar to import LNG.

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. 

The South Asian nation has been facing severe gas shortage since last few years. To augment energy supplies, Pakistan has stepped up effort to attract foreign investment, especially in the oil, gas and LNG sectors. The government recently approved the construction of Russian funded North-South gas pipeline. The pipeline will start from Nawabshah and end at Kasur, near Lahore.