Pakistan saying that its commercial deal of importing LNG from a Qatari company remains unaffected.Pakistan saying that its commercial deal of importing LNG from a Qatari company remains unaffected.
The agreement, signed in February 2016, will enable Pakistan to import at least 35 million tons of LNG in 15 years at the rate of 13.35% of Brent crude oil.
The fuel is a lifeline for Pakistan, as it is partially meeting the power deficit worsened by almost stagnant gas production over the years.
The imported gas is being utilised mainly for power production, in the fertiliser sector, and conversion to CNG for use in vehicles.
At present, Pakistan is importing around 600 million cubic feet per day (mmcfd) LNG from Qatargas. Imports are set to double in the next five to six months when the second LNG import terminal becomes operational in Pakistan.
Meanwhile, sources said there is a four-to-six week delay in making the second LNG import terminal operational at Port Qasim, Karachi. The Pakistan LNG Terminal Limited was to become operational by June 2017.
Domestic demand for gas has shot up to 7 billion cubic feet per day (bcfd) against local production of 4bcfd. Local production has remained stagnant for the last 15 years. “The country would do away with the deficit gas production by importing 3bcfd by December 2018.”
The natural gas in Qatar covers a large portion of the world supply of natural gas. According to Oil & Gas Journal, as of January 1, 2011, reserves of natural gas in Qatar were measured at approximately 896 trillion cubic feet (25.4 trillion cubic metres); this measurement means that the state contains 14% of all known natural-gas reserves, as the world's third-largest reserves, behind Russia and Iran.
In March 2011, Qatar completed its monumental cycle of LNG infrastructure expansion with the inauguration Qatargas IV, Train 7 (80 billion cubic feet (2.3 billion cubic metres) per year), bringing the total capacity to 3.75 trillion cubic feet (106 billion cubic metres) per year. Qatari government officials have noted that they do not anticipate building any more LNG facilities in the near-term future, and that any additional capacity increases will be the result of improvements in the existing facilities.