Pakistan government will most likely sign a long-term gas supply agreement with Qatar in the upcoming weeks. The aim is to deal with Pakistan’s chronic energy shortage.
Pakistan has limited supply of domestic gas thus as an alternative it has moved for the liquefied natural gas. Pakistan was discussing an LNG supply deal with 8 countries for the last few months.
The 8 countries were Indonesia, Malaysia, Russia, Azerbaijan, Qatar, Italy, Oman, and Turkey. Also, a government-owned Saudi company also wants to strike a gas deal with Pakistan. But Qatar has emerged as a favorite for the agreement.
A senior official said that Qatar is offering gas supply at cheapest rates. Thus it is quite probable that the government decides to opt for the supplier offering gas at the lowest rates.
In a couple of weeks, the federal cabinet will decide whether it will continue with a government-to-government agreement or not. Later on other details including deal size, finances will also be known.
Due to a 15-year agreement on 3.75 million tons of LNG supply annually, Qatar is already the biggest gas supplier of Pakistan. Back in 2016, the deal was struck between Qatar and Pakistan for the establishment of first LNG terminal of Pakistan.
Now for its second LNG terminal, Pakistan needs long-term supply contracts that will ensure 600 million cubic feet (mmcfd) of natural gas per day.