Pakistan Discussing LNG Import Plans with ENOC, Eni, Petronas

Pakistan’s oil ministry is in talks with three global energy companies for import of LNG.

According to Business Insider, a financial daily, the ministry is discussing LNG import plans with Emirates National Oil Company (ENOC), Petronas and Eni. According to a government official Pakistan is negotiating with Eni to import 0.75 million tonne of LNG.

Petronas could supply about 1.5 mt of LNG while ENOC is expected to sell LNG from Oman.

Pakistan signed its first long term deal earlier this year with Qatar. As per the deal signed in February, 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. The 15-year long term deal is the largest deal of first quarter 2016, a report by GlobalData suggests. The deal has been estimated to be worth $16 billion.

Switzerland’s Gunvor is also supplying the super chilled fuel to Pakistan.

First LNG shipment under the Pakistan-Qatar long term deal docked at the LNG terminal in Karachi in March. Country's first floating unit is based at Port Qasim in Karachi. 

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.