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Pakistan and Malaysia set to finalise LNG supply deal

Staff Writer |
Pakistan and Malaysia are likely to finalise a multibillion-dollar liquefied natural gas (LNG) supply deal in a government-to-government arrangement during the upcoming visit of Malaysian Prime Minister Mahathir Mohammed.

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At present, 200mn cubic feet of LNG per day (mmcfd) is being handled by the second LNG terminal at Port Qasim, following short and long-term agreements with Gunvor and Eni respectively.

As the capacity utilisation was far lower than the terminal’s capacity, the Cabinet Committee on Energy on Wednesday directed the Petroleum Division to arrange more gas imports in order to fully utilise the capacity of 750 mmcfd.

During Prime Minister Imran Khan’s visit to Kuala Lumpur, the Malaysian premier discussed prospects of the LNG supply agreement.

The two countries had already signed the Inter-governmental Agreement on LNG in November 2017.

Malaysian energy firm Petronas offered LNG supply, but the agreement was delayed due to change of government.

Pakistan wants to export skilled and semi-skilled manpower to Malaysia, particularly in the information technology sector and for industrial-scale manufacturing in the field of electronics.

Pakistan has also sought Malaysian investment in its oil and gas sector.

“The Malaysian premier will arrive on March 23 and several investment agreements are likely to be inked during his trip,” Pakistan Tehreek-e-Insaf (PTI) deputy secretary information Chaudhry Hamid said.

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