DOHA: Federal Minister for Petroleum and Natural Resources of Pakistan, Shahid Khaqan Abbasi, (pictured) yesterday said that the recently signed 20-year LNG sale and purchase agreement between two leading companies in Qatar and Pakistan would contribute a lot towards solving the energy crisis in Pakistan.
In an exclusive interview with The Peninsula, the minister thanked the Emir H H Sheikh Tamim bin Hamad Al Thani for his love and consideration towards Pakistan and appreciated the developing interest of Qatar and its business community in Pakistan.
On October 1, Qatargas and Pakistan-based Global Energy Infrastructure Limited (GEIL) signed a 20-year Liquefied Natural Gas (LNG) Sale and Purchase Agreement (SPA). Under the terms of the agreement, Qatargas will supply 1.3 million tonnes per annum of LNG to Pakistan for 20 years, with provisions allowing the volume to increase to 2.3 million tonnes per annum.
“This is the first agreement where the private sector has taken the lead for LNG supply to Pakistan. It bodes well for the energy future of the country that one of the largest energy suppliers in the world has shown confidence in Pakistan,” said Abbasi. He said Qatargas was one of the largest LNG suppliers in the world. “Their confidence in Pakistan is heartening. Other large energy sector companies of the world will also consider investments and deals in Pakistan. So, it’s a great step,” he added.
Pakistan and Qatar also signed in February this year a separate $16bn Liquefied Natural Gas (LNG) deal for 16 years. This deal was at the government level while the recently signed 20-year agreement is at private level.
Responding a questions on the deal’s impact on Pakistan’s energy needs and crisis, the minister said, “Demand for gas in Pakistan is on the rise and local production is not able to keep up. In future, our need for imported fuels will further rise. And energy is the building block of the modern economy, so anything that helps resolve the energy shortage has ripple effects on the local economy,” he added.
Asked about the agreement’s effects on future relations between the two countries, Abbasi said: “Qatar has already shown tremendous commitment to Pakistan. I think cooperation between Pakistan and Qatar will increase with time, in all fields.”
He said Pakistan was a growing economy with significant appetite for foreign investment, and “we appreciate the interest Qatar and its business community is developing in Pakistan. Hopefully, this LNG deal turns out to be the first of many commitments in bilateral trade and investment.”
As a growing economy, the minister said, Pakistan was always looking for contributions in the energy sector, both foreign and local. “This agreement will alleviate some of the natural gas deficit in the country, but it will not be completely eliminated, as demand is high right now,” he asserted.
Abbasi said that Qatar had always been a long-term partner for Pakistan, and “we appreciate the Pakistani community in Qatar for their contribution towards the development of the host country, Qatar.”
