Pakistan Receives First LNG Imports, But Qatar Supply Deal Sketchy

Pakistan received its first LNG imports on 26 March in Karachi aboard Excelerate Energy’s Exquisite floating storage regasification unit (FSRU), according to local reports.

The FSRU had been expected at the beginning of March, although talks between Qatar and Pakistan for the supply of 3mn tons/year of LNG – around 2.2 bcm/year of gas – over 15 years took longer than expected.

The FSRU was chartered by a joint venture between Pakistani conglomerate Engro and Dutch firm Royal Vopak. The floating unit has the capacity to handle 3.5 mn t/y of LNG with 151,000m³ storage (MEES, 27 February).

Qatar and Pakistan are understood to have finalized the agreement on 13 March, although no official announcement was made to confirm details on volume and price. While the LNG price was touted at around $7/mn BTU – a price deemed relatively cheap – Qatar was understood to be pushing for a higher figure. In any case, in anticipation of future LNG exports from Australia and the US, the agreement confirms Qatar’s strategy to lock supply commitment with a wider pool of buyers – even for relatively limited volumes. (CONTINUED - 270 WORDS)