20-year LNG supply deal struck with Qatargas

Global Energy will build terminal, receive 1.3m tons of LNG per annum

ISLAMABAD: Global Energy Infrastructure Limited (GEIL), a company of the Global Energy Group, clinched a 20-year liquefied natural gas (LNG) sale and purchase agreement with Qatargas, owned by the state of Qatar, for the supply of gas to Pakistan’s market.



This is purely an agreement between the two companies for the long term with no role of the government. Under a separate government-to-government arrangement, Qatargas is currently supplying 400 million cubic feet of LNG per day (mmcfd) to Pakistan.

Qatargas 2, a joint venture between Qatar Petroleum, ExxonMobil and Total that started production in 2009, is committed to providing clean, safe and highly-efficient energy source. Under the agreement announced on Friday by Qatargas, the world’s premier LNG company, it will supply 1.3 million tons of LNG per annum to Pakistan for 20 years, with provisions that allow the volume to be increased to 2.3 million tons.

The gas will be supplied through Qatargas 2, the world’s first fully integrated LNG value chain, with the first cargo expected to arrive in 2018 on a Q-Flex vessel.

“We are proud to support countries in their desire to enhance their energy security. This new agreement reinforces our confidence in Pakistan as an energy market and in its potential,” said Saad Sherida Al-Kaabi, Chairman of Qatargas board of directors.



Commenting on the deal, Qatargas Chief Executive Officer Khalid bin Khalifa Al-Thani said: “I am particularly pleased to strengthen our relationship with Pakistan, which continues to grow as an important market in the LNG industry. I would also like to welcome GEIL to Qatargas’ expanding client portfolio and I look forward to our respective teams working together as we safely and reliably supply LNG to Pakistan.”

GEI Pakistan, the local affiliate of the group, is setting up an LNG re-gasification terminal at the LNG zone at Port Qasim. It will be completed in the first half of 2018 and after that LNG will be imported and re-gasified to meet demand of the market for the next 20 years.

Published in The Express Tribune, July 2^nd, 2016.

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