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Qatar leading the charge for long term Pakistan LNG deal

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LNG Industry,

Reuters is reporting that Qatar has positioned itself as the front-runner for a long-term LNG supply deal with Pakistan.

Pakistan is reportedly running low on domestic gas supplies and has recently turned to LNG imports to meet energy demand and bring a decade of electricity blackouts to a close.

Qatar and Pakistan already have an existing LNG supply deal in place. The current deal, signed in 2016 to supply the country’s first LNG terminal, accounts for exports up 3.75 million tpy of LNG over the course of 15 years. Pakistan is now looking to secure supply contracts for its new second terminal.

With regards to Pakistan’s second terminal, a five-year LNG deal has already been signed with Gunvor, and a 15-year agreement with Eni. However, Pakistan is still seeking long-term contracts for a combined capacity of 400 million ft3/d. Negotiations are reportedly being held with eight countries to satisfy this remaining capacity; including Qatar, Russia, Turkey, Italy, Oman, Azerbaijan, Malaysia, and Indonesia.

According to Reuters’ sources, Qatargas has made the lowest bid for a long-term contract so far. This deal would also include a price review after five or 10 years.

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