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Pakistan, Qatar in LNG Deal

Pakistan, Qatar in LNG DealPakistan, Qatar in LNG Deal

Pakistan on Friday signed an agreement with Qatar for the import of liquefied natural gas (LNG) in order to reduce the cost of power generation, Dawn reported.

Talking to media representatives in Islamabad, federal minister for petroleum and natural resources Shahid Khaqan Abbasi said that the first shipment of LNG will reach Pakistan by the end of March.

 “Pakistan heavily relies on its import of furnace oil and diesel to fuel power stations and both fuels are relatively expensive as compared to LNG, which is cheaper and a more efficient alternative. LNG is also cleaner and considered environment-friendly," said Abbasi.

Re-gasification of LNG will allow generation facilities to reach their maximum potential, using a cleaner and more efficient fuel, and will support the country’s push for greater energy security and diversification.

This is while Islamabad and Tehran had signed a multi-billion-dollar pipeline project to take natural gas from Iran to Pakistan. However, Pakistan is apparently not ready yet to import gas from Iran as no concrete plan has been put forward by Islamabad for pipeline construction and other parts of the project.

The 780 km pipeline due in Pakistan has not been laid due to funding difficulties faced by the Pakistani government. Pipe laying project within Iran’s border was carried out at a cost of $2.5 billion.

Financialtribune.com