Pakistan hopes to save $3 billion through 10-year LNG import contract with Qatar

A liquefied natural gas (LNG) tanker is tugged towards a thermal power station in Futtsu, east of Tokyo on November 13, 2017. (REUTERS/File)
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Updated 26 February 2021
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Pakistan hopes to save $3 billion through 10-year LNG import contract with Qatar

  • The government says the agreement is 31 percent cheaper than the one signed in 2016
  • Officials maintain Pakistan will get three million tons of gas at 10.2 percent of Brent under the deal

ISLAMABAD: Prime Minister Imran Khan said on Friday Pakistan would save $3 billion through a new 10-year Liquefied Natural Gas (LNG) import agreement with Qatar which the government has labeled as one of the cheapest purchase contracts in the global energy sector. 

The two countries signed the agreement in Islamabad under which Qatar will provide three million tons of gas to Pakistan for ten years at 10.2 percent of Brent crude prices. 

Federal Minister for Energy Omar Ayub Khan and Qatar's Energy Minister Saad Sherida al-Kaabi inked the agreement at the Prime Minister's Office in Islamabad while the premier witnessed the signing ceremony.

The prime minister later claimed while addressing a ceremony in Lahore that Pakistan would save $300 million annually as a result of the new LNG import deal with Qatar.

"Pakistan will save $3 billion in ten-year time," Khan said.

Qatar's Minister al-Kaabi termed the agreement with Pakistan as "historic" and expressed confidence it would open up new vistas of development. 

He said his country would also promote bilateral cooperation in other areas of mutual interest.

Earlier in 2016, Pakistan signed a $16 billion LNG import deal with Qatar until 2031 at prorate of 2.25 metric ton while the price for each cargo was agreed at 13.37 percent of Brent.

Under the new agreement, the government said it would be able to import LNG during winter this year to meet the country's growing energy demand.

"We are upending the costly LNG contract [with Qatar] through a 31 percent new cheaper agreement," Nadeem Babar, Special Assistant to Prime Minister Imran Khan on Petroleum, told reporters in a news conference after signing the deal.

Islamabad would get LNG at cheaper rate even as compared to the spot purchase, he said, adding that the Pakistan State Oil would execute the import agreement.

Providing background information on the new deal, he said the government had been negotiating it with Doha for the last two years and the prime minister had directly spoken to the Emir of Qatar in this connection.

"This is the cheapest agreement in the long-term LNG import deals of the world," he said while denying rumors that the government wanted to keep the agreement a secret. 


Peace can only prevail if Afghanistan renounces support for ‘terrorism’— Pakistan defense chief

Updated 04 March 2026
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Peace can only prevail if Afghanistan renounces support for ‘terrorism’— Pakistan defense chief

  • Pakistan’s chief of defense forces visits South Waziristan district bordering Afghanistan
  • Pakistan says has killed 481 Afghan Taliban operatives since clashes began last Thursday

ISLAMABAD: Pakistan’s Chief of Defense Forces Field Marshal Syed Asim Munir said on Wednesday that peace with Afghanistan can only prevail if Kabul renounces support for “terrorism” and “terrorist” organizations, the military’s media wing said as the two countries remain locked in conflict. 

Fighting between the two neighbors, the worst in decades, broke out last Thursday night after Afghan forces attacked Pakistan’s military installations along their shared border. Afghanistan said its attacks were in response to earlier airstrikes by Pakistan against alleged militant hideouts in its country. 

Pakistan accuses Afghanistan of sheltering militant outfits such as the Tehreek-e-Taliban Pakistan (TTP) on its soil who have launched attacks against Pakistani civilians and security forces in recent years. Kabul denies the allegations. 

Munir visited Wana town in Pakistan’s South Waziristan district to review the security situation and troops’ operational preparedness at the Afghan border, the Pakistani military’s media wing said in a statement. 

“The Field Marshal reiterated that peace could only prevail between both sides if the Afghan Taliban renounced their support for terrorism and terrorist organizations,” the Inter-Services Public Relations (ISPR) said. 

The military chief said the use of Afghan soil by militant outfits to launch attacks against Pakistan was unacceptable, vowing that “all necessary measures” would be taken to neutralize cross-border threats. 

During the visit, Munir was briefed by military commanders about ongoing intelligence-based operations and measures being taken by the military to manage the border with Afghanistan.

He was also briefed about “Operation Ghazab Lil Haq” or “Wrath for the Truth,” the name Pakistan has given to its military operation against Afghan forces, the ISPR said. 

The Pakistani military chief spoke to troops deployed in the area, praising their vigilance, professional conduct and high morale, the ISPR said. 

Pakistan’s Information Minister Attaullah Tarar said on Wednesday that the military has killed 481 Taliban operatives, injured more than 690 and destroyed 226 Afghan checkposts since clashes began. 

Arab News has been unable to verify claims by both sides about the damages they claim to have inflicted on each other.

Afghanistan has signaled it is open for dialogue but Pakistan rejected the offer, saying it would continue its military operations till its objectives were achieved. 

Since the conflict began, diplomatic efforts have intensified with several countries, including global bodies such as the European Union and United Nations, urging restraint and calling for talks.

Turkish President Recep Tayyip Erdogan told Pakistani Prime Minister Shehbaz Sharif that ⁠Ankara would help ⁠reinstate a ceasefire, the Turkish Presidency said on Tuesday, as other countries that had offered to mediate have since been hit by the conflict in the Gulf.