State-owned LNG giant Qatar Petroleum has entered into a new long-term deal to supply liquefied natural gas to Pakistan State Oil Company.
Under the sale and purchase agreement, QP will supply up to 3 million tons per annum of LNG to Pakistan for a period of 10 years, it said on Friday.
In addition, deliveries to Port Qasim, which currently hosts two LNG import facilities both utilizing FSRUs, will start in 2022.
This marks the second agreement signed between Qatari and Pakistani firms since 2016, when Qatargas signed a long-term deal to supply PSO with 3.75 mtpa of LNG.
Moreover, the new deal raises the total of long-term LNG supplies from Qatar to Pakistan to 6.75 mtpa, QP said.
“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,” Qatar’s energy minister and chief executive of QP, Saad Sherida Al-Kaabi, said.
Second deal of the week
QP keeps piling up long-term deals and this marks the second it announced this week following the Vitol deal for Bangladesh.
The deals come just two weeks after QP’s final investment decision and the contract awards for its giant LNG expansion project.
The EPC award is part of the North Field East project and Chiyoda and Technip will build four “mega trains” with a capacity of 8 million tonnes per year in the Ras Laffan complex.
This first phase of the expansion project will increase Qatar’s LNG production capacity from 77 to 110 mtpa.
QP’s unit Qatargas already operates six LNG trains at Ras Laffan.