Pakistan Eyeing New LNG Deals: Report

Pakistan is planning to source more LNG through long-term government-to-government deals as demand for the commodity continues to rise, according to a local media report published June 20.

The government is hoping to save $300-400mn annually by negotiating prices lower than what it is currently paying, a government official told The Express Tribune. Pakistan has a long-term agreement with Qatar which was signed in 2016. According to a report published by Dawn June 14, the country has imported a total of 10mn metric tons of LNG since it began importing the commodity three years ago.  Around 80% of the import has been under long and medium-term agreements, and the remainder from spot markets. 

Pakistan's first LNG import venture became operational in March 2015, with Exquisite on charter from US shipowner Excelerate at Port Qasim, near Karachi, providing the infrastructure. The second terminal, also at Port Qasim, became operational last year.

However, Pakistan’s LNG sector has been mired in controversies lately. Pakistan’s anti-corruption agency National Accountability Bureau (NAB) June 6 approved an inquiry against former prime ministers Nawaz Sharif and Shahid Khaqan Abbasi over alleged misuse of power in allotting an LNG terminal project contract while Pakistan’s Senate Standing Committee on Petroleum June 7 sought full details of the Qatar LNG deal from country’s petroleum ministry.