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Qatar appears close to finalizing a 15-year LNG supply contract with new importer Pakistan. For Qatar, the deal, with its relatively low price, is another step towards diversifying its LNG export portfolio amid increased competition.
Qatargas will supply Pakistan with 3mn tons/year of LNG – around 2.2 bcm/year of gas – from March in a deal estimated at around $22bn. The LNG will be imported via a floating storage regasification unit in the Port of Qasim, near Karachi on the Arabian Sea.
Pakistan has suffered chronic gas shortages and power cuts due to gas demand outstripping domestic production. Gas accounted for almost half of Pakistan’s power generation mix in 2013. Pakistan expects LNG imports to rise to around 7mn t/y within three years, with plans to develop another import facility. (CONTINUED - 1341 WORDS)