Doha, 26 Feb. 2021 (QP)
Qatar Petroleum and Pakistan State Oil (PSO) signed today a new long-term Sale and Purchase Agreement(SPA) 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 agreement, LNG deliveries to Pakistan’s world-class receiving terminals will commence in 2022 and continue until the end of2031.
The SPA was signed in Islamabad by Saad Sherida Al-Kaabi, Minister of State for Energy Affairs, President and CEO of Qatar Petroleum, and Syed Taha, Managing Director & CEO of PSO in a special ceremony in presence of Pakistan Prime Minister, Imran Khan, senior Pakistani government officials and Sheikh Saoud bin Abdulrahman AlThani, Qatar’s Ambassador to Pakistan.
.Saad Sherida Al-Kaabi welcomed the SPA signing and said: “We are delighted to enter into this new long-term agreement with Pakistan State Oil Company Limited and to continue our contributions towards meeting Pakistan’s increasing energy demand.”
Al-Kaabi said that : “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.”
Al-Kaabi concluded his remarks by saying: “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 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.
This is the second such agreement signed between Qatari and Pakistani entities since 2016, when Qatargas signed a long-term agreement to supply PSO with3.75 MTPA of LNG. Today’s agreement raises the total of long-term LNG supplies from Qatar to Pakistan to 6.75 MTPA.