Pakistan and Qatar signed four agreements and Memorandum of Understandings (MoUs) including the liquefied natural gas (LNG) deal
DOHA (Qatar) – Pakistan had signed a 15-year agreement to import up to 3.75 million tons of Liquefied Natural Gas (LNG) a year from Qatar, a major step in filling Pakistan’s energy shortfall.
The agreement was signed by Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi and Chairman of Qatar Gas Board of Directors Saad Sherida Al-Kaabi at a ceremony in Diwan-e-Emiri in Doha.
According to the agreement, Qatar will provide Pakistan with a billion dollars’ worth of LNG annually and Qatar Liquefied Gas Company Limited will sell the gas from year 2016 to 2031 to Pakistan State Oil (PSO).
The signing ceremony was also witnessed by Prime Minister Nawaz Sharif and Emir of Qatar Sheikh Tamim bin Hamad Bin Khalifa Al-Thani.
The agreements and Memorandom of Understandings (MoUs) were signed to increase cooperation in diverse fields including Radio and Television, education, health and academic research between the two countries.
Pakistan, a nation of 190 million people, can only supply about two-thirds of its gas needs. The ruling party, which campaigned on promises of resolving the energy crisis, wants to ease shortages by expanding LNG shipments before a 2018 general election.
Supplies will start in March, Qatar’s state. They will eventually come to around five LNG cargoes per month, the official said.
A price review is permitted 10 years after the start of supply. A cancellation option could shorten the deal to 11 years if the parties fail to agree a new price. A period to build up supply is provided for.
Pakistan, along with Egypt and Jordan, was a newcomer to the LNG import market in 2015, helping drive up demand and absorb growing world supplies from a wave of new projects.
The prime minster said that Pakistan values its bilateral relations with Qatar and both countries enjoy friendly relations. Sharif said that Pakistan is a suitable country for investment and quantum of investment should be enhanced.
The Emir of Qatar on this occasion thanked the prime minister for visit and said that Qatar is second home for Pakistanis. He said that Pakistanis have contributed substantially in the development of Qatar.