Pakistan Orders Four LNG Cargoes For Winters From Qatar
Pakistan has officially demanded Qatar for the supply of four more LNG (Liquified Natural Gas) cargoes at 10.20 percent of the Brent, two each for November and December 2021 under the second government to government 10-year LNG agreement that goes operational from January 1, 2022.
The order was confirmed by the PSO (Pakistan State Oil) while stating that the four additional cargoes would be acquired from QP (Qatar Petroleum) during Nov-Dec 2021 as per the PSO and QP contract.
This delivery was made part of the contract owing to the higher winter demand when spot prices shoot higher. With the help of these additional cargoes, the customers with lower-priced LNG will be benefitted.
“The procedure’s operational details are being managed by the Petroleum Division between all stakeholders.” The development has also been confirmed by SAPM (Special Assistant to Prime Minister) Tabish Gauhar, mentioning that Qatar has formally been updated about the move.
By this future planning, the government will obtain four LNG consignments at 10.20 percent of the Brent when the spot prices may reach about 15 percent of the Brent.
Pakistan already imports LNG from Qatar under G to G 15-year long-term agreement took place in 2015 at 13.37 percent of the Brent.
However, under the G-to-G (govt to govt ) new LNG deal, Pakistan will import 450 cargoes from Qatar in 10 years at an actual rate of 10.13 pc from January 1, 2022, although the deal was decided at 10.20 percent of the Brent.
The PTI government agreed on the deal with the price review clause after 4 years. In the meantime, this deal is also under the NAB (National Accountability Bureau) scan looking for any ‘wrongdoing’.