Pakistan's Global Energy Infrastructure Signs LNG Deal With Qatargas

Qatargas on Thursday announced it has signed a deal with Pakistan based Global Energy Infrastructure Limited for supply of LNG.

As per the sale-purchase deal signed between the parties, Qatargas will supply 1.3 million tonne per annum of LNG to Pakistan for 20 years, with provisions allowing the volume to increase to 2.3 million tonne per annum.

Qatargas did not provide details about the value of the deal.

The LNG will be supplied from Qatargas 2 with the first cargo expected to be delivered to Pakistan in 2018 by Qatargas- chartered Q-Flex vessels.

“This new agreement reinforces our confidence in Pakistan as an energy market and in its potential,” Saad Sherida Al-Kaabi, Chairman of Qatargas Board of Directors, said.

Earlier this year, Pakistan signed its first long term deal 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 tonne 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.

The South Asian nation has been facing severe gas shortage since last few years.