First Agreement For Private-to-private LNG Import To Pakistan

ISLAMABAD, (UrduPoint / Pakistan Point News -29th Sep,2016) : The first ever agreement was signed here Thursday between two private companies of Pakistan and Qatar for import of initially 1.3 million tons per annum (mtpa) Liquefied Natural Gas (LNG) to Pakistan.

The agreement was signed here at the PM House between Global Energy Infrastructure Limited of Pakistan and Qatar Gas, the world's largest LNG import company. Prime Minister Muhammad Nawaz Sharif along with Minister for Petroleum Shahid Khaqan Abbasi and Minister for Finance Ishaq Dar besides CEO Qatar Gas and CEO Global Energy Infrastructure witnessed the ceremony.

The project was envisioned some five years ago that was now being realized to help mitigate the energy crisis of the country. The engagement of private firms is part of government's strategies to rid the country of energy crisis it had inherited in 2013.

In order to tackle the chronic energy crisis the government was pursuing short, mid and long term plans and strategies to cope with the gas and electricity needs. The first LNG terminal was delivering the commodity to the end consumers imported from Qatar while more LNG terminal projects and supplies are also being pursued.

Talking to APP, CEO Global Energy Infrastructure Limited Farrukh Qayyum Saeed said their company had made partnership with Exxon Mobil, Total, Hoegh, STFA and Mitsubishi to execute the project.

He said this was a 20-year agreement between the companies and the volume of gas import could be enhanced to 2.3 mtpa. He said the government had allowed them to use the Sui gas infrastructure and they were in contact with industries, housing colonies and CNG sector to offer their commodity for purchase.

He said under this agreement they would offer a competitive LNG price as agreed with the government. The group is pursuing an integrated LNG supply project, which includes the construction of an LNG Terminal in the LNG Zone at Port Qasim, Karachi, as well as the supply of LNG from international producers.

The group has arranged financing to start construction at the earliest. The Terminal is expected to commence operations in first half of 2018.