Pakistan Mulls More Qatari LNG Imports
Pakistan is mulling a proposal to import an additional 200mn ft3/day of LNG from Qatar.
The Economic Coordination Committee (ECC) has asked the energy ministry’s petroleum division to carry out a comprehensive demand and supply analysis of LNG in the country, the government said in a statement March 27. According to Pakistani newspaper Dawn, the government will create a price negotiation committee for talks on potential sales and purchase agreements (SPA).
Pakistan already has a long-term LNG contract with Qatar. Pakistan State Oil (PSO) 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 (PLL) also has a long-term deal with ENI, which commits the Italian company to supply 0.75mn mt/yr.
In both SPAs, a price review is due after 10 years. According to the Dawn report, Qatar has offered around a 20% discount on previous rates for additional quantities.
The south Asian nation started importing LNG in 2015 with the commissioning of the Exquisite FSRU, located at Port Qasim near Karachi. Pakistan commissioned its second FSRU in late 2017. However, in recent months there have been lot of voices calling for review of the Qatargas deal.