Qatar, Pakistan Finalise LNG Deal
Qatargas and Pakistan’s Global Energy Infrastructure have formally signed a 20-year LNG deal October 1 in a special ceremony hosted by Pakistan's prime minister Nawaz Sharif in Islamabad.
The Qatari delegation was led by Saad Sherida Al-Kaabi, CEO of Qatar Petroleum accompanied by Khalid Bin Khalifa Al-Thani, CEO of Qatargas, and senior Qatargas officials, Qatargas said in a statement; the 20-year deal was first announced in June.
According to the contract, Qatargas will supply 1.3mn mt/yr of LNG to Pakistan for 20 years, with provisions allowing the volume to increase to 2.3mn mt/yr. Qatargas did not provide details about the value of the deal. The LNG will be supplied from Qatargas 2 with the first cargo expected to be delivered to Pakistan in 2018 by Qatargas-chartered Q-Flex vessels.
The commemoration ceremony (Credit: Qatargas)
Earlier this year, Pakistan signed its first long term deal with Qatar. As per that deal signed in February, Qatargas will supply fuel to state owned 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 supply 3.75mn mt/yr of LNG to PSO.
The south Asian nation has been facing severe gas shortage for the last few years.