Qatar-Pakistan LNG Deal Biggest of Q1 2016

The 15 year long term LNG deal signed between Qatar and Pakistan earlier this year is the largest deal of first quarter 2016, a report by GlobalData suggests.

The deal has been estimated to be worth $16 billion. As per the agreement, 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 fuel will be imported via Port Qasim Floating I regasification terminal.

The deal was signed during Prime Minister Nawaz Sharif’s two-day visit to Qatar. Pakistani oil minister Shahid Khaqan Abbasi and chairman of Qatargas Board of Director Saad Sherida Al Kaabi signed the agreement at a ceremony at Diwan e Emiri.

According to the report, a total of five long-term LNG contracts were signed in Q1 2016. In addition to the Pakistan-Qatar deal, ENN Group of China signed two LNG import contracts with Chevron and Origin Energy for import of LNG from Australia.

Veresen Inc and JERA Co., Inc. also signed a contract to import LNG from the Jordan Cove terminal in the US to Japan. JERA is a joint venture created last spring between Tokyo Electric Power (Tepco) and Chubu Electric Power.