In a significant advancement, Russia has informed Pakistan that its LNG export terminals will be ready by 2026 for initiating gas trade with the country, as reported by PressTonight. Both nations are actively considering future LNG transactions, particularly as Pakistan’s long-term agreements with Qatar approach their price re-opening clauses.
A senior official at the Ministry of Energy explained that Pakistan first signed a 15-year LNG deal with Qatar in February 2016 at 13.37% of Brent crude prices, with a price re-opening clause after 11 years. Additionally, a 10-year LNG agreement was signed with Qatar on February 26, 2021, at 10.2% of Brent, featuring a re-opening clause after five years.
Moreover, Pakistan LNG Limited, a wholly state-owned entity, established two long-term agreements in 2017 with LNG trading companies ENI and GUNVOR. Currently, Pakistan receives five cargoes per month from Qatar at 13.37% of Brent, four cargoes at 10.2% of Brent under government-to-government deals, and one cargo per month from ENI at 12.14% of Brent.
