ISLAMABAD - After conclusion of initial negotiations on the import of Liquefied Natural Gas (LNG), Pakistan is likely to receive a term sheet from Qatar next week that will set forth the basic terms and conditions for the gas sale purchase agreement, an official source said. A team of Pakistani officials visited Doha earlier this week to negotiate on the quality and quantity of LNG. The talks were held positively and Qatar would be sending a term sheet that will help the Pakistani side to start negotiations on the price of supplies, the source said.
The term sheet is a non binding agreement that sets the basic terms to develop detailed legal documents, explained the source adding that it was similar to the letter of intent (LOI). Petroleum minister Dr Asim Hussain had visited Doha earlier this month to discuss LNG imports equivalent to 500 mmcfd.
Faced with the gas shortfall of over 2 bcfd, government is focusing on expediting gas imports through LNG and pipeline to overcome the energy shortages that were hampering economic activities in the country. The government had granted permission to three private sector companies to start LNG imports totally equal to 1.5 bcfd from this year. Sharp rise in LNG prices were seen a reason that could delay import of LNG by private sector. Initially the government wanted private sector to negotiate with Qatar but it said that it could provide LNG on long term basis only if deal on government to government basis was signed along with a sovereign guarantee from Pakistan. If the deal was signed within the next few weeks the LNG were expected to start by December this year. The government plans to utilise the Progas LPG import terminal to expedite LNG imports.