Pakistan, Qatar Sign LNG Deal

Pakistan has signed an LNG import agreement with Qatar, Radio Pakistan reported Friday quoting Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi.

The Minister did not disclose the price but said the details will be submitted before the Economic Coordination Committee for approval adding that first shipment of the fuel will reach Pakistan by the end of this month. In January, Business Recorder newspaper has reported that price could be in the range of $8 to $10 per mmbtu. 

Abbasi added that the electricity generation through LNG will reduce cost of production by 40 percent as compared with diesel, Radio Pakistan reported.

He said LNG will initially be supplied to four power plants in Punjab and KAPCO for power generation.

Pakistan is facing severe shortage of natural gas. It plans to build LNG terminals at the Port Qasim and Gwadar Port, which will handle imported gas with an estimated re-gasification capacity equal to around 2 bcfd of natural gas.