LNG import agreement signed with Qatar: petroleum minister

First LNG shipment to reach Pakistan by end of March; Ministry also signs oil exploration MoU with Kuwaiti company

ISLAMABAD: Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi said that an agreement had been signed with Qatar to import LNG, Radio Pakistan reported.

The minister informed the media on Friday that the LNG import price will be submitted before the Economic Coordination Committee for approval, adding that the first shipment of LNG will reach Pakistan by the end of this month.

Read: Pakistan finalises $21b LNG deal with Qatar

Abbasi said that electricity generation through LNG will reduce cost of production by 40% as compared to diesel power generation, adding that LNG will initially be provided to four power plants in Punjab and KAPCO for power generation.

Read: LNG import: Qatar lowers price to whet Pakistan's appetite

Earlier, the Ministry of Petroleum and Natural Resources and a Kuwaiti company signed an MOU for oil exploration in the country. Under the agreement, the company will invest $9.5million in Pakistan. The collaboration will help increase oil production in the country which currently stands at 100,000 barrel.