ISLAMABAD, Pakistan: Minister for Petroleum Shahid Khaqan Abbasi has said that import of 3.75 tons liquefied natural gas (LNG) annually from Qatar would be sufficient for 20 per cent needs of the country and would be first used for reviving closed power plants of this energy-starved country.
Talking to PTV News from Doha, the Minister said that “This agreement is hailed around the world as the most cost effective deal for LNG globally under which Pakistan will keep importing this fuel from Qatar till 2031,” he added.
He said that provided diesel is replaced with LNG then government would save 600 mmm dollars adding that all the fertilizer factories and domestic users would benefit from this agreement with Qatar.
“We will also end the import of costlier fertilizer by using LNG in this sector. The procurement and installation of terminals for LNG will be ensured as per demand in the country,” he said.
He said that the agreement would help Pakistan address energy shortages in the country and play an important role in economic development. “2000mw shortage will be recovered,” he said.
“This is a government to government deal that was signed between Pakistan’s ministry of petroleum and Qatar Gas”, he added.
He further explained that both the parties had the right to renegotiate price of the fuel after 10 years of the agreement.
“This is very flexible agreement under which it is expected that Pakistan would import LNG worth $1 billion in first year of the agreement”, he added.
Replying to a question he said the imported fuel would be first used for running the closed power plants to meet the energy crisis.
He said now “Qatar would provide third LNG ship in fourth week of every month unlike previous deal under which Qatar was supposed to provide one LNG ship in first, second and third week of every month”.
He further said that the agreement signed with Qatar was being recognized globally as a cost-effective and reasonable deal.