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Govt to sign five more LNG agreements with Qatar: Abbasi

Govt to sign five more LNG agreements with Qatar: Abbasi

MULTAN: The government has announced to sign five more liquefied natural gas (LNG) supply agreements with Qatar in coming days.

Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi, addressing the members of Multan Chamber of Commerce & Industry (MCCI), said that the new LNG supply agreements would help fulfil national energy needs and put the country on path of progress.

Abbasi said that the country was heading towards ‘charter of economy’, which would ensure continuity of economic policies. He disclosed that gas would be supplied to all fertilizer factories during the current year, adding that this decision was taken to meet the domestic demand. He added that it would also help the country save precious foreign exchange and cut fertilizer import.

He announced that now domestic LPG gas cylinder would be available at Rs700/800 in winter. He said that we have established a new company “Pakistan Energy” which would sign PSA with IPPs and industries.

Khaqan Abbasi said past three governments made five attempts over the ten years to import LNG, but they failed in adopting integrated approach where LNG terminal developer was also LNG supplier. He said the PML-N government resorted to un-bundled approach and the LNG terminal development was separated from LNG procurement, thus succeeding to provide the country with its first LNG-based gas within 20 months of its tenure.

The minister said LNG was a game changer and the 400 mmcfd LNG terminal would add five per cent to the country’s primary energy mix. He said average re-gasification tolling fee was charged at $0.66 per MMBTU which was the lowest in the world, adding most LNG contracts in the world were priced at direct linkage to oil and Pakistan LNG imports would also be linked to oil.