Qatar Petroleum entered into a new long-term sale and purchase agreement (SPA) with Pakistan State Oil Company (PSO) for the supply of up to 3mn tonnes per annum (MTPA) of liquefied natural gas (LNG) to Pakistan.
This is the second such agreement signed between Qatari and Pakistani entities since 2016, when Qatargas signed a long-term pact to supply PSO with 3.75MTPA of LNG.
Today’s agreement raises the total of long-term LNG supplies from Qatar to Pakistan to 6.75MTPA. Under the latest 10-year agreement, LNG deliveries to Pakistan’s receiving terminals will start in 2022 and continue until the end of 2031.
Pakistan now has two operational LNG receiving terminals -- the Engro and Pakistan GasPort, both of which utilise 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.
The SPA was signed in Islamabad by HE Saad Sherida al-Kaabi, the Minister of State for Energy Affairs as well as the president and chief executive of Qatar Petroleum, and Syed Taha, the managing director and chief executive of PSO, in a special ceremony in the presence of Imran Khan, the prime minister Pakistan, senior Pakistani government officials and Sheikh Saoud bin Abdulrahman al-Thani, Qatar’s envoy to Pakistan.
"We are delighted to enter into this new long-term agreement with PSO and to continue our contribution toward meeting Pakistan’s increasing energy demands,” al-Kaabi said.
This agreement further extends Qatar’s long standing LNG supply relationship with Pakistan and highlights its commitment to meeting Pakistan’s LNG requirements, he said.
"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 said, adding 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," according to al-Kaabi.