Oman Keen to Supply LNG to Pakistan

State-owned Oman Trading International (OTI) is looking to sign a memorandum of understanding with government-run Pakistan LNG pertaining to supply of LNG, Radio Pakistan reported July 4.

The issue was discussed during a meeting of an OTI delegation led by ambassador of Oman Sheikh Mohammed Al Marhoon with Pakistani officials in Islamabad. Apart from LNG, OTI also expressed desire to supply gasoline, LPG and other petroleum products. OTI already supplies LNG to Bangladesh, another south Asian country where demand for gas is expanding.

With domestic gas production stagnant, Pakistan has been relying on LNG to meet the growing gas demand. Pakistan started importing LNG in 2015 with the commissioning of the Exquisite FSRU, located at Port Qasim. Pakistan commissioned its second FSRU in late 2017.

Pakistan is now planning to set up the third terminal at Port Qasim. The Economic Coordination Committee of Pakistani cabinet July 3 approved the resolution of the Port Qasim Authority board to allow amendment in its master plan to accommodate the prospective third LNG terminal at Port Qasim near Karachi.

Pakistan has a long-term LNG contract with Qatar. Pakistan State Oil and Qatargas signed in 2016 a 15-year SPA for supply of 3.76mn mt/yr at a price of 13.36% of Brent. Pakistan LNG also has a long-term deal with Eni, which commits the Italian company to supply 0.75mn mt/yr.