Home Global Village Qatari Emir welcomes PM Khan’s Invitation to visit Pakistan

Qatari Emir welcomes PM Khan’s Invitation to visit Pakistan

Pakistan and Qatar have been developing ties and working on different projects. A most recent breakthrough was the supply of cheap LNG by Qatar to Pakistan. PM Imran Khan called on Qatari emir and invited him to Pakistan, a gesture that he appreciated.

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News Desk |

A brief phone call was made by the Qatari Emir Sheikh Tamim bin Hamad Al Thani to Pakistani Prime Minister Imran Khan on Thursday to discuss bilateral relations and trade developments between the two countries.

In addition to reviewing economic policies that could potentially boost the development of both countries in various fields, PM Imran Khan invited the Qatari Emir to pay a visit to Pakistan; a gesture welcomed by the Emir.

Qatar trades on the maritime routes passing through the Strait of Hormuz to the rest of Asia. However, the attack on two ships on the Gulf of Oman on Thursday might affect Qatar’s LNG supply to its partners in Asia

The Qatari premier is expected to visit Pakistan by the end of June according to sources in Islamabad that GVS has spoken with.

Potential LNG Trade Deal between Qatar and Pakistan

A long term Liquefied Natural Gas -LNG deal is expected to be agreed upon between the two countries on relatively lower rates.

Pakistan at present is running out of its domestic gas resources and hence its reliability on LNG imports has increased over the years. In order to meet its energy needs, the present government has managed to negotiate a 10 year LNG deal with Qatar on rates lower than the previous government’s deal.

Previously, under the government of PMLN, Pakistan had struck a 15 year long LNG deal with Qatari regime under which Pakistan was supposed to import LNG at 13.37 percent of crude oil price. However, the former Prime Minister and the Petroleum Minister at the time of the deal, Shahid Khaqqan Abbasi got federal approval to buy the LNG at 13.80 percent of crude oil price.

The documents produced by the Pakistan LNG Limited (PLL) have confirmed that Pakistan had received LNG supply from Qatar at an expensive rate.

Read more: The Qatar Charity: Qatar’s Humanitarian Efforts for the Orphans of Pakistan

Last month, Qatar agreed upon supplying Pakistan with 400 million feet (MMBFD) of LNG per day on low rates as part of the fresh agreements between the two countries that will be finalized on the expected arrival of the Qatari Emir to Pakistan by the end of this month.

Qatar’s Shift from Petroleum to LNG Trade as part of its Economic-Diversification Drive

Qatar under its National Vision 2030 aims to diversify its economy by focusing on its strength of massive LNG reservoirs. In the wake of the economic blockade and political boycott imposed by its neighboring Gulf states for alleged support to terrorism, Qatar withdrew from its OPEC membership earlier this year in the pursuit of following an independent economic policy.

“The withdrawal decision reflects Qatar’s desire to focus its efforts on plans to develop and increase its natural gas production from 77 million tonnes per year to 110 million tonnes in the coming years.” the Qatari Energy Minister, Saad Sherida al-Kaabi said in a press conference in 2018.

Qatar with the help of a private entity Dolphin Energy Limited provides LNG supply to the UAE despite its blockade on Qatar since 2017. Qatar is focused on developing unilateral trade based on public-private partnership for its LNG supplies.

While discussing Qatar’s interests to invest in its LNG trade, he further justified Qatar’s withdrawal decision by stating, “We are a small player in OPEC, and I’m a businessman, it doesn’t make sense for me to focus on things that are not our strength, and gas is our strength so that is why we’ve made this decision”.

“Achieving our ambitious growth strategy will undoubtedly require focused efforts, commitment and dedication to maintain and strengthen Qatar’s position as the leading natural gas producer,” he added further.

Qatar’s North Field – a rich LNG Resource

Qatar’s North Field encompasses one of the largest LNG resources in the world. After Russia and Iran, Qatar is measured to have the third largest natural gas reserves of approximately 896 trillion cubic feet making it the owner of 14 percent of the entire known gas reserves in the world. The North Field gas is said to be as large as the Qatari land territory itself is physically linked with South Pars Field that is owned by Iran.

Read more: Qatar’s friendly suit: Promises to provide the UAE with its share of LNG

Qatar with the help of a private entity Dolphin Energy Limited provides LNG supply to the UAE despite its blockade on Qatar since 2017. Qatar is focused on developing unilateral trade based on public-private partnership for its LNG supplies.

At present, Qatar trades on the maritime routes passing through the Strait of Hormuz to the rest of Asia. However, the attack on two ships on the Gulf of Oman on Thursday might affect Qatar’s LNG supply to its partners in Asia.

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