ISLAMABAD: Welcoming the investment by private sector in LNG sector, Prime Minister Nawaz Sharif here on Thursday said that the government had created the policy framework and investor-friendly environment for more private investment into Pakistan in LNG infrastructure and supply side.
The premier stated this while attending the ceremony held in PM House to commemorate first-ever LNG supply deal for 20 years for which an agreement has been concluded between Pakistan’s private company — Global Energy Group with Qatargas Company, Furrukh Qayyum, CEO of the said private company told The News.
The petroleum minister said that one of the first and foremost challenges of the government, when his party came into power, was the energy shortages.The chief executive of Pakistan said that Pakistan now had a constrained deficit of 3 billion cubic feet per day, which requires both public and private LNG projects and initiatives.
The ceremony was held at the Prime Minister’s House. Qatari delegation was led by Saad Sherida S J Al-Kaabi, President and CEO, Qatar Petroleum, Khalid Khalifa AlThani, CEO, Qatargas, and senior management of Qatargas, along with federal ministers and senior government officials of Pakistan, and heads of diplomatic mission attended the ceremony.
In addition to Qatargas, other parties supporting LNG supply into Pakistan with Global Energy Group also attended the ceremony, including ExxonMobil, Total, Hoegh LNG, STFA and Standard Chartered Bank.
The delivery of LNG to Pakistani buyers by Global Energy Group will start on first half of 2018. Prime Minister Nawaz Sharif welcomed the dignitaries from Qatar very warmly, and thanked them for their continued support to Pakistan including supply of LNG under government-to-government process earlier, and now, under private-to-private process between Qatargas and Global Energy Infrastructure Limited (GEIL).
He said that Global Energy Group’s project was testament to the pro-business policies of the government. The dignitaries from Qatar Petroleum and Qatargas were welcomed and thanked by all the parties, for their continued support for Pakistan.
Ahmet Caliskan, Chairman of Global Energy Group thanked all those present at the momentous occasion and said that the group was happy to play its part in contributing to the energy sufficiency of Pakistan.
Pakistan is currently importing 400 mmcfd LNG from Qatar under government-to government arrangement. However, the new LNG deal has been made under private-to-private model almost close to the price of the LNG at which the government is currently importing from Qatar. The government-to-government deal was struck with Qatar at 13.37 percent of the three months’ average price of the Brent.
Under the deal, Qatargas Company will supply 1.3 million tonnes per annum (MTPA) of Liquefied Natural Gas (LNG) to Pakistan for 20 years, with provisions allowing the volume to increase to 2.3 million tonnes per annum.
The LNG will be supplied from Qatargas 2, the world’s first fully integrated LNG value chain venture, with the first cargo expected to be delivered to Pakistan in 2018 by Qatargas chartered Q-Flex vessels, Furrukh Qayyum, CEO of Global Energy Infrastructure Limited told The News.
The Qatargas Company will provide the LNG up to 350 mmcfd gas per day starting from 200 mmcfd and the agreement has been inked under which a private company will import LNG and re-gasify it and then sell it to private sector. Under this deal, the government of Pakistan will not provide any take-off guarantee to GEIL.
“We have been given the capacity allocation of 350 mmcfd by Sui Southern and Sui Northern for the transportation gas from south to north and to this effect GEIL has also inked the transmission and distribution agreements with both the gas utilities,” Mr Qayyum said.
Mr Qayyum said that Global Energy Infrastructure Limited (GEIL) will construct the LNG terminal in LNG zone of Port Qasim and to this effect site has also been selected. The EPC (engineering, procurement, and contract) and design of the terminal is already ready.
To a question he said that the terminal site had been approved by Lloyd of London and the site of terminal in LNG zone had been endorsed and approved by Foster Wheeler.
Mr Qayyum said his company would provide the LNG to private sector that included power, CNG sectors, housing societies and industrial zones.
