RIYADH: Pakistan is seeking to seal a long-term liquified natural gas deal in a bid as it attempts to curb supply crunch and potential power outages.
The deal includes acquiring one LNG cargo per month for the upcoming 10 to 15 years, Bloomberg reported, citing Shahid Khaqan Abbasi who is overseeing the country’s energy sector for the prime minister.
The timeline for the issuance of the tender is yet to be disclosed by the government, after which market response and pricing will be tested.
Pakistan intends to speak to Middle Eastern countries including Qatar, the UAE, Saudi Arabia, and Oman regarding the long-term LNG contract. A potential agreement with Russia also remains on the table, according to Abbasi.
This comes as the cash-strapped country had to buy costly LNG shipments from the spot market last month in order to avoid blackouts.
Despite the longest industry’s deals topping 20 years, Pakistan said that it is open to signing a 30-year contract to guarantee enough power to fuel its economy.