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QP enters into long-term deal for LNG supply to Pakistan
Qatar Petroleum (QP) has entered into a new long-term Sale and Purchase Agreement (SPA) with Pakistan State Oil Company Limited (PSO) for the supply of up to 3 million tons per annum (MTPA) of liquefied natural gas (LNG) to the Islamic Republic of Pakistan.
Under the 10-year deal, LNG deliveries to Pakistan’s world-class receiving terminals will begin in 2022 and continue until the end of 2031.
This is the second such agreement the two sides have signed since 2016 when Qatargas signed a long-term agreement to supply PSO with 3.75 MTPA of LNG.
The new agreement raises the total of long-term LNG supplies from Qatar to Pakistan to 6.75 MTPA.
His Excellency the Minister of State for Energy Affairs and CEO of QP, Saad Sherida Al Kaabi and the Managing Director & CEO of PSO Syed Taha initialled the agreement in Islamabad yesterday.
Qatar Petroleum entered into new a long-term Sale and Purchase Agreement with Pakistan State Oil Company Limited for supply of up to 3 MTPA of LNG to Pakistan. Under 10-year agreement, LNG deliveries to Pakistan receiving terminals will start in 2022. #QNAhttps://t.co/jCPbXQAUDr pic.twitter.com/GFMbcKcWJy
— Qatar News Agency (@QNAEnglish) February 26, 2021
The ceremony also saw the attendance of Pakistan's Prime Minister, Imran Khan, Qatar's Ambassador to Pakistan HE Sheikh Saoud bin Abdulrahman Al Thani, and some other senior officials from the Pakistani government.
HE Al-Kaabi welcomed the SPA signing and commented, “We are delighted to enter into this new long-term agreement with Pakistan State Oil Company Limited and to continue our contributions toward meeting Pakistan’s increasing energy demand.”
“This agreement further extends Qatar’s long standing LNG supply relationship with Pakistan and highlights our commitment to meeting Pakistan’s LNG requirements. We are confident that the exceptional reliability of our LNG supplies will provide PSO with the required flexibility and supply security to fuel Pakistan’s impressive growth," HE the Energy Minister added.
He concluded, "With a well-established gas market and distribution system, Pakistan is a strategically important market for Qatar LNG. We are encouraged by Pakistan’s exceptional growth and excellent economic potential as well as by the prospect of it being one of the world’s fastest-growing LNG markets.
"I would like to take this opportunity to thank His Excellency Prime Minister Imran Khan for his support and for his patronage of this special event. I also would like to thank Pakistan’s energy officials as well as PSO’s management for all their efforts and for the professional and transparent negotiations leading to today’s important agreement.”
Pakistan currently has two operational LNG receiving terminals, namely the Engro LNG Receiving Terminal and Pakistan GasPort LNG Receiving Terminal, both of which, utilize Floating Storage and Regasification Units moored in Port Qasim.
There are a number of additional terminals currently under consideration by various private sector players in the country.
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