Pakistan, Qatar sign $1 billion annual LNG supply deal

Published February 10, 2016
The agreement was jointly signed by Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi and Chairman of Qatar Gas Board of Directors Saad Sherida Al-Kaabi at a ceremony in Diwan-e-Emiri in Doha.─ Photo: PM House
The agreement was jointly signed by Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi and Chairman of Qatar Gas Board of Directors Saad Sherida Al-Kaabi at a ceremony in Diwan-e-Emiri in Doha.─ Photo: PM House
Prime Minister Nawaz Sharif is on a two-day visit to the State of Qatar on the invitations of His Highness Sheikh Tamim bin Hamad bin Khalifa Al-Thani, the Emir of the State of Qatar.─ Photo: PM House
Prime Minister Nawaz Sharif is on a two-day visit to the State of Qatar on the invitations of His Highness Sheikh Tamim bin Hamad bin Khalifa Al-Thani, the Emir of the State of Qatar.─ Photo: PM House

ISLAMABAD: Pakistan and Qatar signed a long term liquefied natural gas (LNG) supply agreement on Wednesday in Doha as a part of Prime Minister's two day visit to the Middle Eastern country.

The agreement was jointly signed by Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasiand and Chairman of Qatar Gas Board of Directors Saad Sherida Al-Kaabi at a ceremony in Diwan-e-Emiri in Doha, according to which the kingdom will provide a billion dollars’ worth of LNG to Pakistan annually.

Related: PSO allowed to sign $16bn LNG deal with Qatar

Qatar Liquefied Gas Company Limited will sell LNG from 2016 to year 2031 to Pakistan State Oil (PSO).

The annual contract quantity for 2016 has been agreed at a prorate of 2.25 metric tonne while the price for each cargo has been agreed at 13.37 per cent of Brent.

Abbasi later told media that the import price of LNG from Qatar was the best available rate, adding that Pakistan will get at least thirty-five million tonnes of LNG to help rid the energy crisis.

“The import of gas will also help start production of at least 2,000 megawatts of electricity from power houses that are currently non-operational,” said the minister.

The Economic Coordination Committee (ECC) on January 14 had allowed PSO to sign the LNG Sale Purchase Agreement (LSPA) with Qatargas to overcome the energy shortfall.

Prime Minister Nawaz Sharif is currently on two-day visit to the State of Qatar on the invitations of His Highness Sheikh Tamim bin Hamad bin Khalifa Al-Thani, the Emir of the State of Qatar, and His Excellency Sheikh Abdullah Bin Nasser Bin Khalifa Al-Thani.

Related: Resolving energy crisis by 2018 top priority, says Nawaz

A number of Memorandums of Understanding (MoUs) in the field of health, radio & television, education & research were also signed by both sides on the occasion.

Opinion

Editorial

Anti-smuggling drive
Updated 04 Oct, 2023

Anti-smuggling drive

Smuggling is eating into the economy, weakening it and imposing enormous costs on the manufacturing industry, jobs and public well-being.
Deadly trade
Updated 04 Oct, 2023

Deadly trade

Not only is the physical well-being of individuals at risk, the ethical fibre of our medical community is also threatened.
Caucasus conflict
04 Oct, 2023

Caucasus conflict

AFTER more than three decades of stalemate, the bloody conflict in Nagorno-Karabakh may be headed for a conclusion....
Relying on debt
Updated 03 Oct, 2023

Relying on debt

Sadly, the ruling military and civil elite haven’t grasped the seriousness of the economic crises.
Palestine abandoned
03 Oct, 2023

Palestine abandoned

IT appears to be only a matter of time before a normalisation deal is announced between Saudi Arabia and Israel....
Killjoys in Swat
03 Oct, 2023

Killjoys in Swat

IN yet another blow to women’s rights in Pakistan, a group of young, spirited girls seeking to participate in a...