Qatar Petroleum entered a new long-term Sale and Purchase Agreement (SPA) with Pakistan State Oil Company Limited (PSO) for the supply of up to 3 million tonnes per annum (MTPA) of liquefied natural gas (LNG) to the Islamic Republic of Pakistan.
Under the ten-year agreement, LNG deliveries to Pakistan’s world-class receiving terminals will commence in 2022 and will continue until the end of 2031.
The SPA was signed in Islamabad by Minister of State for Energy Affairs and Qatar Petroleum President/CEO HE Saad Sherida Al Kaabi and PSO Managing Director and CEO Syed Taha. The special ceremony was held under the patronage of the Prime Minister of the Islamic Republic of Pakistan HE Imran Khan, who was also there to grace the event, Qatar’s Ambassador to Pakistan HE Sheikh Saoud bin Abdulrahman Al Thani and senior Pakistani government officials.
HE Al Kaabi welcomed the SPA signing and said they are delighted to enter into a new long-term agreement with PSO and to continue Qatar’s contributions to meeting Pakistan’s increasing energy demand.
The agreement further extends Qatar’s long-standing LNG supply relationship with Pakistan and highlights our commitment to meeting Pakistan’s LNG requirements.
The minister said they are confident that the exceptional reliability of Qatar’s LNG supplies will provide PSO with the required flexibility and supply security to fuel Pakistan’s growth.
According to HE Al Kaabi, 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.
Pakistan currently has two operational LNG receiving terminals, namely the Engro LNG Receiving Terminal and Pakistan GasPort LNG Receiving Terminal, 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.
This is the second agreement signed between Qatar and Pakistan since 2016 when Qatargas signed a long-term agreement to supply PSO with 3.75 MTPA of LNG. Today’s agreement raises the total of long-term LNG supplies from Qatar to Pakistan to 6.75 MTPA.
For updates and more information, visit qp.com.qa.
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