Pakistan gives go-ahead for oil, gas import from Nigeria

Published: September 1, 2017
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LNG Terminal. PHOTO: REUTERS

LNG Terminal. PHOTO: REUTERS

ISLAMABAD: The Pakistani government has given the go-ahead to the Ministry of Energy for kicking off negotiations with Nigeria to explore the possibility of cooperation in oil and gas production and trade including import of crude oil and liquefied natural gas (LNG) without going into the bidding process, officials say.

The ministry is seeking close partnership with energy-rich Nigeria in a government-to-government arrangement in order to encourage and promote investments in each other’s petroleum upstream and downstream industries.

Govt plans to strike LNG deals with big African producers

Under a proposed deal, the two countries will exchange technical and other information as well as data on mutually beneficial projects and activities.

They will also ensure cooperation of academia and science institutes in the oil and gas field at national, regional and international levels.

At present, Pakistan is annually importing 4.5 million tons of LNG and the volume will shoot up to 9 million tons before the end of current calendar year. Projections show the country will annually need 20 million tons of LNG within three years and 30 million tons in five years. Although Nigeria LNG Limited’s production dropped 1.8 million tons in 2016, the company still kept its position as one of the top five LNG exporters in the world.

According to the International Gas Union’s World LNG 2017 report, Nigeria featured among top five LNG exporters by share between 2015 and 2016. The order of the top five exporters was Qatar, Australia, Malaysia, Nigeria and Indonesia.

As part of the proposal, Pakistan and Nigeria will explore the possibility of crude oil, oil products and LNG supplies and setting up refining facilities. They will share experience and assist in gas infrastructure development, gas consumption and optimum utilisation of flare gas.

The two countries will also conduct joint development studies, evaluate the possibility of well drilling, examine production data including samples of work areas and exchange results of studies.

They will undertake studies in collaboration with Nigerian National Petroleum Corporation and Pakistan’s state-owned companies – Pakistan Petroleum Limited and Oil and Gas Development Company.

Pakistan gears up for another LNG terminal

This will lead to joint ventures in exploration and production through separate agreements covering offshore areas and unconventional shale and tight gas reserves in onshore areas.

Pakistan and Nigeria will look at state-to-state joint venture opportunities in storage facilities for oil and oil products, marketing, distribution and retail.

They will develop human capital and conduct research and development work in hydrocarbon sectors of both countries through exchanges at various levels. They will also engage in geological studies in the mining sector.

Published in The Express Tribune, September 1st, 2017.

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Reader Comments (3)

  • Jammer
    Sep 1, 2017 - 10:15AM

    We are a brilliant country. Other than nigeria no other country can accept over invoicing and massive under the table commissions.
    Looks like that eceryone in Govt want to become billionaire.

    Why dont they sell the country to Isreal in 1 go. They can pay upfront 300 billion to distroy it. Fix the match again that you will not respond as you do with india. Recommend

  • Sajid Rabbani
    Sep 1, 2017 - 10:26AM

    Corruption Index of Transparency Intl.:

    Pakistan stands at 116 out of 176 countries. Point scoring 32 out of 100

    Nigeria stands at 136 out of 176 countries. Point scoring 28 out of 100

    Good (corruption) partnershipRecommend

  • Shakti
    Sep 1, 2017 - 11:15AM

    The Saudis and other Ummah brothers will be most upset by this move. India’s import of 2 million barrels of US oil has already stirred the mideast pot.Recommend

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