Pakistan aims to sign a long-term Liquified Natural Gas (LNG) purchase deal in a bid to secure future supply and ease crippling blackouts.
The government is still deciding the timeline for when to issue the tender, which they will use to gauge the market response and pricing, Abbasi said in an interview.
The government will also speak with LNG suppliers in the Middle East, including Qatar, the UAE, Saudi Arabia and Oman, for a long-term contract
The country depends on overseas LNG for power generation and was hit particularly hard by the surge in spot prices and supply disruptions.
The cash-strapped government resorted to planned blackouts to conserve its dwindling supply of fuel.
Long-term deals are much cheaper than current spot rates and may provide some relief to the respective government.
The government will keep the 30% clause in future deals, said Abbasi, who explained that it is standard in contracts.
Pakistan is also open to signing a 30-year contract to make sure it has enough fuel to power its economy well into the future, said Abbasi. Today, the industry’s longest deals rarely top 20 years.
For all the latest updates and news, visit CxO Global FORUM.