Islamabad: Pakistan is in talks to import liquefied natural gas (LNG) from Qatar, a minister said yesterday, as the country grapples with a chronic energy shortage.
Petroleum Minister Shahid Khaqan Abbasi confirmed talks were under way with Qatar, but said he “cannot comment on... details at this time as it is under negotiation”.
A report in the Wall Street Journal yesterday said the deal would be worth $1.5bn annually and quoted officials as saying the agreement could be finalised by March. Pakistan has faced a severe energy crisis since 2006, brought about largely by “circular debt” — the dual effect of the government setting low electricity prices and of customers failing to pay bills.
The government of Prime Minister Nawaz Sharif made solving the energy crisis a key campaign pledge, but has so far failed to alleviate the problem. Increasing oil supplies could impact on the country’s fiscal deficit target of 4.5 percent.
AFP
