First LNG Shipment Under Qatari Long Term Deal Arrives in Pakistan

First LNG shipment under the Pakistan-Qatar long term deal docked at the LNG terminal in Karachi on Tuesday, Express Tribune reported.

The consignment carrying approximately 141,000 cubic metres will now be injected into the network of Sui Southern Gas Company.

As per the deal signed last month, 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 tons per annum (MTPA) of LNG to PSO. 

According to Express Tribune, the second shipment is scheduled to arrive at Port Qasim on March 8.

Pakistan is facing severe shortage of gas as demand has outstripped supply in recent years. The country’s total gas production is around 4 billion cubic feet per day (bcfd), while the demand stands at 6 bcfd.