Qatargas, Pakistan close to 15-year LNG supply deal

CAIRO/ISLAMABAD: State-run Gulf energy company Qatargas is in the final stages of talks on a deal to supply Pakistan with 3 million tonnes of liquefied natural gas (LNG) annually for 15 years, industry sources in Doha told Reuters on Wednesday.

The deal would help the country tackle serious energy shortages and power cuts which can last up to 20 hours a day.

Nearly half the country’s electricity is generated by gas and its output of 4.1 billion cubic feet per day is well short of demand for as much as 6 billion, depending on the time of year.

One source said the deal would be signed in weeks, while a second said the first shipment would be received by March.

An official at the Ministry of Water and Power confirmed an LNG deal was planned but declined to give details.

No-one at Qatargas, the world´s largest LNG producer, was available to comment.

Pakistan State Oil (PSO) said payments to Qatar would be guaranteed by the government so any cash flow problems at PSO would not affect the Qatargas deal.