Under the new agreement, LNG deliveries to Pakistan’s receiving terminals will start from January 2022 and continue until the end of 2031.
The country will get 3 million tonnes of LNG per year, starting with average of 2 ships per month, which would be increased to 4 vessels in next 3 years.
The new LNG contract has a price renegotiation option after 4 years rather than 10 years that had been fixed in the earlier signed 15-year contract.
Pakistan´s Prime Minister Imran Khan, who witnessed the signing ceremony, stated:
- The new contract will help save the country $300 million annually or nearly $3 billion in the next 10 years
It is the lowest publicly disclosed LNG contract in the world today
Under the new contract, Pakistan would pay around $316 million less compared to prior agreement saving around $3 billion in LNG import during the next 10 years.
Qatar Petroleum CEO Saad Sherida al-Kaabi termed the LNG agreement a historic one for both the countries and noted:
- We are delighted to enter into this new long-term agreement with PSO and to continue our contribution toward meeting Pakistan’s increasing energy demands
- 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