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    Pakistan to Save $3bn in New Qatar LNG Deal: Press

Summary

Islamabad will save $317mn/year thanks to the reduced price of the gas compared to the previous agreement.

by: Shardul Sharma

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Complimentary, NGW News Alert, Natural Gas & LNG News, Asia/Oceania, Liquefied Natural Gas (LNG), Corporate, Import/Export, News By Country, Pakistan, Qatar

Pakistan to Save $3bn in New Qatar LNG Deal: Press

Pakistan’s new LNG deal with Qatar will save Islamabad a total of about $3bn over the next 10 years, Associated Press reported on March 1 citing a statement by a senior government official. 

The agreement, signed last week, will save Pakistan $317mn/year thanks to the reduced price of the gas compared to the previous agreement between the two countries, Nadeem Babar, prime minister Imran Khan’s adviser on petroleum, said. 

Under the new agreement, state-run Qatar Petroleum will supply up to 3mn metric tons/year of LNG to Pakistan State Oil for 10 years starting 2022 at a reduced price of about 31% compared with the previous agreement signed in 2016. 

Pakistan began importing LNG in 2015, after the launch of the 4.5mn mt/yr Engro Elengy terminal. The 5mn mt/yr Pakistan GasPort terminal was brought on stream two years later. Both facilities are in Port Qasim.