Qatargas and Pakistan's GEIL sign 20-year LNG deal
Qatargas will supply 1.3mn tonnes per annum of LNG to Pakistan for 20 years, with provisions allowing the volume to increase to 2.3mn tonnes per annum
Qatargas and Pakistan-based Global Energy Infrastructure Limited (GEIL) have signed a 20-year Sale and Purchase Agreement (SPA) for Liquefied Natural Gas (LNG).
Under the terms of the agreement, Qatargas will supply 1.3mn tonnes per annum of LNG to Pakistan for 20 years, with provisions allowing the volume to increase to 2.3 million tonnes per annum.
The LNG will be supplied from Qatargas 2, the world’s first fully integrated LNG value chain venture, with the first cargo expected to be delivered to Pakistan in 2018 by Qatargas-chartered Q-Flex vessels.
The agreement was signed during a special ceremony hosted by Pakistani Prime Minister Nawaz Sharif in the capital Islamabad.
The Qatari delegation was led by Saad Sherida Al-Kaabi, the president and CEO of Qatar Petroleum and the chairman of the Qatargas Board of Directors, accompanied by Sheikh Khalid Bin Khalifa Al-Thani, the CEO of Qatargas, and senior Qatargas officials.
Speaking at the ceremony, Al-Kaabi said, “The agreement with GEIL reinforces our confidence in Pakistan as a promising energy market. It also enables us to meet Pakistan’s energy needs from the world’s most reliable LNG producer, thus enhancing our long and historic brotherly relations.”
He further said: “This agreement also demonstrates our confidence in LNG, and natural gas in general, as a clean energy source that is instrumental in reducing greenhouse gas emissions globally.”
Commenting on the deal, Al-Thani said: “Qatargas is pleased to commemorate the signing of a 20-year deal with GEIL for the supply of LNG into Pakistan. I am particularly pleased to strengthen our relationship with Pakistan, which continues to grow as an important LNG (consumer) market. I have great confidence in this deal, and I look forward to our respective teams working together as we safely and reliably supply LNG to Pakistan.”