ISLAMABAD: Pakistan and Qatar on Wednesday have inked an agreement for supply of Liquefied Natural Gas (LNG) worth around one billion dollars to Pakistan annually, Radio Pakistan reported.
Prime Minister is in Qatar for two day official visit, the agreement on Long Term LNG Sale and Purchase was signed today.
Under the agreement, the price for each LNG cargo in a particular month will be at 13.37 percent of Brent (Brent is the leading global price benchmark for Atlantic basin crude oils).
Fifteen year agreement starting from 2016 will end on 2031, Qatar Liquefied Gas Company Limited will be selling LNG to Pakistan State Oil Company Limited.
Minister for Petroleum Shahid Khakqan Abbasi told media after inking agreement,”The LNG from Qatar is being purchased at the best available rates and will help start production of 2000 megawatts of electricity from power houses that are currently not operational.”
The Minister said under the agreement, Qatar will provide around one billion dollars’ worth of LNG annually to Pakistan that will meet twenty per cent requirements of the country. He said the deal will help the country get out of its energy crisis and provide thirty-five million tons of LNG.