With a 213 million population, Pakistan is the world’s sixth-most populous country. For more than a decade, it has suffered a serious energy shortage that caused repeated electricity blackouts and gas supply outage, in an economy that has made a shift from using oil to running gas in many industries.
About 40 per cent of Pakistan’s energy needs are met by natural gas. State-owned Pakistan LNG supplies domestic demand by turning to the international markets. Qatar is already the biggest supplier of gas to Pakistan thanks to a 15 year long-term contract. The gas-rich nation currently exports 3.75 million tonnes of LNG per year to Pakistan via Pakistan’s first LNG terminal.
Pakistan is looking to sign a long-term supply contract for its second LNG terminal. So far, it has been negotiating with eighth countries including Azerbaijan, Indonesia, Italy, Malaysia, Oman, Qatar, Russia and Turkey.
To date, according to officials, Qatar has offered the lowest price. The cabinet of Pakistan’s Prime Minister Imran Khan is set to choose a supplier within the next weeks.