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May 3, 2021

Clicking future market: Pakistan orders four LNG cargoes for winters from Qatar

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May 3, 2021

ISLAMABAD: In an apparent pleasant departure from the past, Pakistan has formally asked Qatar to provide four more LNG 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 into operation from January 1, 2022.

The Pakistan State Oil (PSO) confirmed the order saying the four additional cargoes would be acquired from QP during Nov-Dec 2021 in accordance with the PSO and QP contract. This provision was included in the contract in view of the higher winter demand when spot prices shoot higher. These additional cargoes will benefit the consumers with lower priced LNG. “The operational details of the arrangement are being coordinated by the Petroleum Division between all stakeholders.” SAPM Tabish Gauhar also confirmed the development, saying Qatar has formally been conveyed about the move. By planning ahead, the government will acquire four LNG consignments at 10.20 percent of the Brent when the spot prices may hover around 15 percent of the Brent.

Pakistan is already importing LNG from Qatar under GtoG 15 year long term agreement inked 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 in 10 years from Qatar at an effective rate of 10.13 pc from January 1, 2022 though the deal was concluded at 10.20 percent of the Brent. The PTI government inked the deal with the price review clause after 4 years. Meanwhile, this deal is also under the NAB scan looking for any ‘wrongdoing.