Qatar agrees to export LNG to Pakistan

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ISLAMABAD: The Qatar government has refused to install the LNG terminal at Karachi but has agreed to export 500 million cubic feet LNG to Pakistan on government-to-government basis.Top officials of the Ministry of Petroleum and Natural Resources have worked a out a three point framework to this effect, sources told The News.

A special meeting was held with federal Minister for Petroleum and Natural Resources Mr Khakan Abbasi here on Tuesday. The minister sensitised the participants of the meeting that Qatar has refused to help Pakistan install the LNG terminal at Karachi port with re-gasification facilities.

However, it has agreed to export 500 mmcfd LNG to Pakistan on g-to-g basis, but Pakistan will be responsible for establishing the LNG terminal. In the meeting, the three point framework was carved out to materialise the import of the LNG from Qatar.

As per the three-point framework, the Sui Southern will convert the LPG storage terminal into LNG terminal through retro fitting. The official said that the government would soon issue the tenders to select the company for retro fitting of LPG terminal and the company which will do retrofitting and convert the LPG terminal into LNG terminal will be paid through tolling charges.

For 200 mmcfd LNG, the LPG terminal of Engro Pack will be used after the retrofitting process. The LPG terminals of both the companies will be converted into LNG terminal in 7 months period. However, for import of 500-1000 mmcfd LNG, the government would establish new terminal through the international competitive bidding process (ICB).

The Engro Company has assured the government to help install the LNG terminal within 12-15 months if government enters into a deal with it after transparent process. However, the sources said that the import of LNG is not possible at a price less than $17 per mmbtu. The minister told the meeting that the government is left with no option but to import LNG on short and long term basis to cope with the gas crisis. In the meeting the proposal to get the exemption from PPRA rules to materialize the projects has also been considered. The Ministry will send its three-point framework to economic coordination committee (ECC) for approval.




Courtesy: The News


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