Pakistan Moves Closer to a Long Term LNG Deal with Qatar

Pakistan is close to clinching a long term LNG deal with Qatar at an estimated price in the range of $8 to $10 per mmbtu, according to Pakistani newspaper Business Recorder.

Federal Minister for Petroleum and Natural Resources, Shahid Khaqan Abbasi who has just returned from a visit to Qatar has summoned a high-level meeting of relevant stakeholders of the LNG project on January 26 to discuss the terms and conditions of the final agreement with Qatar, sources have told the newspaper.

Qatar has assured Pakistan of supplying sustainable LNG for 15 years. During the visit, the two countries discussed Sales Purchase Agreement (SPA) for LNG and the minister will share the details of his talks with Qatari officials before making a presentation to the Prime Minister, according to Business Recorder. 

"As yet both the countries have not agreed on LNG price but it will be in the range of $8 to $10 per mmbtu. The Qatar government has assured Pakistan of supplying required quantity of LNG. Pakistan has addressed all the concerns of the Qatari government and they are ready to supply LNG,"  an official stated. 

Pakistan hopes to get its first LNG terminal ready by early next year. The terminal is being constructed by Elengy Terminal Pakistan Limited.

A second LNG terminal is also expected to come up at Gwadar.