Turkish company, Qatargas to sign agreement for LNG supply to Pakistan

The Global Energy Infrastructure Limited (GEIL) of Turkey and Qatargas will sign an agreement for import of Liquefied Natural Gas (LNG) to Pakistan for 20 years here on Thursday.

An informed source said the signing will take place between the CEO of GEIL and CEO of Qatargas. The signing will be witnessed by the Prime Minister and key members of the federal cabinet. The agreement will be the biggest private international investment for Pakistan and will help in addressing the energy shortages in the country.

Under the agreement, Qatargas will supply 1.3 million tons per annum of LNG to Pakistan for 20 years, with provisions allowing the volume to increase to 2.3m tons per annum. The LNG will be supplied form Qatargas-2, the world’s first fully integrated LNG value chain venture, with the first cargo expected to be delivered to Pakistan in 2018 by Qatargas-charted Q-Flex vessels.

It is important to mention that both the companies had announced in July this year that they concluded a $ 22 billion long-term LNG Sale and Purchase Agreement (SPA) under which Qatargas, a company owned by State of Qatar, will supply LNG to Pakistan’s market, on private-to-private basis.

GEIP is setting up an LNG regasification terminal at Port Qasim LNG Zone, on a site procured from the Port Qasim Authority (PQA). The terminal will be completed in the first half of 2018. Following the terminal completion, LNG procured from Qatargas will be imported into Pakistan and re-gasified to meet demands of the local market for the next 20 years. The LNG will be supplied from Qatargas 2, the world’s first fully integrated LNG value chain venture, with the first cargo expected to be delivered to Pakistan in 2018 by Qatargas- chartered Q-Flex vessels.