Qatar’s state-owned petroleum company Qatar Petroleum – which operates all oil and gas activities, including exploration, production, refining, transport, and storage in the country – has entered into a long-term Sale and Purchase Agreement (SPA) with Pakistan State Oil Company Limited (PSO).
The agreement includes the supply of up to 3 million tons per annum (MTPA) of liquefied natural gas (LNG) to the Islamic Republic of Pakistan.
Under the 10-year agreement, LNG deliveries to Pakistan’s receiving terminals will begin in 2022 and continue until the end of 2031.
This is the second such agreement signed between Qatari and Pakistani entities since 2016, when Qatargas signed a long-term agreement to supply PSO with 3.75 MTPA of LNG.
The latest agreement raises the total of long-term LNG supplies from Qatar to Pakistan to 6.75 MTPA.
The SPA was signed in Islamabad by the Minister of State for Energy Affairs, and the President and CEO of Qatar Petroleum, HE Saad Sherida Al-Kaabi; and the Managing Director and CEO of PSO, Syed Taha in a ceremony held under the patronage of the Prime Minister of the Islamic Republic of Pakistan, HE Imran Khan; and Qatar’s Ambassador to Pakistan, HE Sheikh Saoud bin Abdulrahman Al Thani; among other officials.
HE Saad Sherida Al-Kaabi said: “We are delighted to enter into this new long-term agreement with Pakistan State Oil Company Limited and to continue our contributions towards meeting Pakistan’s increasing energy demand.
“This agreement further extends Qatar’s long standing LNG supply relationship with Pakistan and highlights our commitment to meeting Pakistan’s LNG requirements. We are confident that the exceptional reliability of our LNG supplies will provide PSO with the required flexibility and supply security to fuel Pakistan’s impressive growth.”
HE Al-Kaabi added: “With a well-established gas market and distribution system, 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.
“I would like to take this opportunity to thank HE Prime Minister Imran Khan for his support and for his patronage of this special event. I also would like to thank Pakistan’s energy officials as well as PSO’s management for all their efforts and for the professional and transparent negotiations leading to today’s important agreement.”
Pakistan currently has two operational LNG receiving terminals, including 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.
