ISLAMABAD: Global Energy Infrastructure Ltd (GEIL) of Turkey and Qatargas on Friday announced signing of about $22 billion agreement for import of Liquefied Natural Gas (LNG) to Pakistan for 20 years.
A statement issued by the GEIL, a company of Global Energy Group of Turkey, said it “concluded a 20-year long-term LNG Sale and Purchase Agreement (SPA) with Qatargas, a company owned by State of Qatar, for supply of LNG/RLNG to Pakistan’s market, on private-to-private basis.”
GEI Pakistan (GEIP), the local company of the Group, is setting up an LNG regasification terminal at Port Qasim LNG Zone, on a site procured from the Port Qasim Authority (PQA). The terminal will be completed in the first half of 2018.
Following the terminal completion, LNG procured from Qatargas will be imported into Pakistan and re-gasified to meet demands of the local market for the next 20 years.
“This agreement represents the single largest private international contract to be signed for Pakistan,” said the statement, adding it was an exemplary foreign private investment initiative to supplement the initiatives of Government of Pakistan in addressing the energy shortages in the country.
It also reflects the confidence of international business community in the government’s successful policies in the energy sector, the company said and hoped the deal will help the economy of Pakistan, create jobs and enhance production capacity of private sector.
Separately, Qatargas also announced a long-term Sale and Purchase Agreement (SPA) with Global Energy Infrastructure Limited (GEIL).
Under the agreement, Qatargas will supply 1.3 million tonnes per annum of Liquefied Natural Gas (LNG) to Pakistan for 20 years, with provisions allowing the volume to increase to 2.3m tonnes per annum.
The LNG will be supplied form Qatargas-2, the world’s first fully integrated LNG value chain venture, with the first cargo expected to be delivered to Pakistan in 2018 by Qatargas-charted Q-Flex vessels.
Saad Sherida Al-Kaabi, Chairman of Qatargas Board of Directors, reaffirmed the commitment of Qatargas to provide clean and reliable energy to customers.
He said: “We are proud to support countries in their desire to enhance their energy security. This new agreement reinforces our confidence in Pakistan as an energy market and in its potential.”
Qatar, as the World’s largest exporter of LNG, has been able to achieve its strategic objective to diversify its export base to include major gas markets, and to be a leader in the supply of a clean energy source that will help reduce greenhouse gas emissions and protect the environment, he said.
Commenting on the newly-signed deal, Khalid bin Khalifa Al-Thani, Chief Executive Officer of Qatargas, said:
“Qatargas is delighted to announce a 20-year deal with GEIL for the supply of LNG into Pakistan.