Pakistan Qatar Sign Historic Decade Long LNG Contract

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Pakistan and Qatar LNG contract

Pakistan and Qatar have marked another drawn out Liquefied Natural Gas (LNG) supply contract for extra 200 million cubic feet daily (MMCFD) at around 31% lower rate than the 2015 agreement for 500MMCFD. 

The 10-year understanding endorsed on Friday involved the “most reduced at any point openly revealed cost under a drawn out agreement on the planet” and was accomplished through joint endeavors of the political and military initiatives, said Special Assistant to the Prime Minister on Petroleum Nadeem Babar while talking at a news gathering after the marking function. 

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The Pakistan Tehreek-I-Insaf government had at the beginning of its term attempted to revise the drawn out agreements with Qatar endorsed by the Pakistan Muslim League-Nawaz government in 2015-16 with comparable statements that it had gotten the most reduced long haul cost and no major LNG buyers — a lot bigger than Pakistan — had up to that point got such a cost. 

Qatar had clearly declined even to talk about the current agreement, saying it had many comparative long haul contracts with different nations and didn’t have any desire to start a trend, however had offered to give 20-25pc value limits to the extra 200MMCFD LNG supplies thinking about the dear cordial relations between the two nations. 

Notwithstanding, the offer didn’t emerge at that point, as Pakistan didn’t have a limit past 100MMCFD extra amounts at that point and furthermore because of a contradiction inside the bureau for political reasons. 

PM’s helper says political, military endeavors behind the least at any point openly unveiled cost on the planet 

Mr Babar told the presser that the stockpile under new Qatar arrangement would supplant request of the two existing and terminating long haul bargains. 

Under the new arrangement, which will be successful from January 2022, Qatar will at first convey two boats (containing an aggregate of around 200MMCFD of LNG) a month. Afterward, the provisions will be improved up to four boats (400MMCFD) at the pace of 10.2pc of Brent. 

Conversely, the principal Pak-Qatar LNG contract had been finished paperwork for a very long time, starting with 100MMCFD (one boat every month) and later going up to 500MMCFD (five ships per month) at the pace of 13.37pc of Brent. 

The new agreement has a value renegotiation alternative following four years as opposed to 10 years that had been fixed in the recently marked agreement.

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