Pak-Qatar deal on LNG purchase to be signed on November 15

ISLAMABAD: Qatar and Pakistan will sign historical deal for the provision of Liquefied Natural Gas (LNG) in the mid of November and immediately after that the supply of LNG to Pakistan will be started through ships.
The Jang Group has achieved the bullet points of this agreement. According to the agreement the Economic Coordination Committee of the Federal Cabinet will give approval to this 15-year deal for the purchase of LNG from Qatar at its meeting on Thursday (November 5) which will be presided over by Finance Minister Ishaq Dar. Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi will give briefing to the meeting regarding the LNG agreement. He will tell the meeting that Qatar will supply three million ton LNG to Pakistan through 52 ships annually. The price of the LNG will be attached to the price of Brent crude oil.
Qatar will provide 400 million cubic ft natural gas daily to Pakistan which is equal to the present production of Sui gas field. The natural gas made by LNG will be provided to nine IPPS. These nine IPPs will produce approximately 1800MW power daily through LNG.
Besides these nine IPPs the natural gas produced by this LNG will be provided to Nandipur Power Plant from March 2016 and this will decrease 25% per unit cost of production of power in Nandipur.
The natural gas produced by LNG will also be provided to fertilizer factories including Pak-Arab Fertilizer and Daud Hercules Fertilizer which would help them produce Urea fertilizer and Phosphate Urea.
This gas will also be supplied to CNG stations. Pakistan has been importing LNG from different sources including Australia, Nigeria, New Guinea, Spain and Belgium and also from Qatar since March 26, 2015.
The private sector of fertilizer has purchased three ships so far and one ship of LNG has been purchased by owners of the CNG stations.
According to the agreement Qatar will provide four ships of LNG every month. The LNG will be provided to brass and textile industries that are ready to buy LNG. The wheel of industry will start booming through such move. This will also create job opportunities for skilled, unskilled and unemployed manpower. It is also expected that gas loadshedding will decrease greatly for domestic consumers with provision of LNG to other sectors.