Qatar To offer $1B Worth Of LNG To Pakistan Yearly

DOHA: Pakistan and Qatar on the day of Wednesday inked an agreement for supply of nearly 1 billion US dollars worth of Liquefied Natural Gas (LNG) to Pakistan yearly to assist the country meet its energy shortfall.

The agreement on Long Term LNG Sale and Purchase was signed during the visit of Prime Minister Nawaz Sharif’s 2-day visit to the state Qatar.

Minister for Petroleum Shahid Khaqan Abbasi and Chairman of Qatar gas Board of Director Saad Sherida Al Kaabi signed an agreement at an event at Diwan-e-Emiri here.

Under the agreement, the cost for each LNG cargo in a specific month has been accepted at 13.37% of Brent where Brent value is average of the preceding 3 months Brent value.

In accordance to details, the Qatar Liquefied Gas would sell Pakistan State Oil LNG for a time from the years 2016 to 2031. The annual Contract Quantity for 2016 has been accepted at prorates of 2.25 mt, for the year 2017 Q1 prorate of 2.25 mt and for 2017 Q2 to 2031 3.75 mtpa.

The Long Term LNG SPA also gives for annual upward and downward flexibilities up to 3LNG cargoes each contract year. Downward flexibility can be gathered for 2 contract years.

The payment terms claim that the PSO would make payment fifteen days after completion of unloading.