Business

DOHA (Staff Report) – Pakistan and Qatar on Wednesday signed an agreement for supply of about one billion dollars Liquefied Natural Gas (LNG) to Pakistan annually to help the country meet its energy crisis.

Minister for Petroleum Shahid Khaqan Abbasi and Chairman of Qatar Gas Board of Directors Saad Sherida Al-Kaabi signed agreement at a ceremony held in Doha.

Under the agreement, the price for each LNG cargo in a particular month has been agreed at 13.37 percent of Brent.

Qatar Liquefied Gas Company Limited will sell Pakistan State Oil Company Limited, LNG for a period from 2016-2031. The annual contract quantity for 2016 has been agreed at prorate of 2.25mt.

The agreement also provides for annual upward and downward flexibilities upto three LNG cargoes per contract year. Downward flexibility can be accumulated for two contract years.

The payment terms state that PSO will make payment fifteen days after completion of unloading.

The agreement was signed during Prime Minister Muhammad Nawaz Sharif’s two days visit to Qatar.