Like Russia builds the Yamal LNG plant facility, Pakistan is in negotiating to import LNG from Russia a worth billions of dollars government-to-government import contract.
The Yamal LNG Project entails the development of the massive South Tambey (Tambeyskoye) gas resource in Russia’s Yamal peninsula, near Sabetta. The Russian govt has designated the project, which will cost roughly $27 billion, to be of national interest.
This is a fresh contribution to Pakistan and Russia’s energy cooperation since the two nations – are already working on several programs such as the Pak Gas Stream, a gas pipeline via Kazakhstan, and an offshore gas pipeline.
As per sources, the Pakistani government is interested in signing a government-to-government agreement with Russia to buy LNG to fulfil the country’s expanding gas demand.
They further said that Russia was working on the Yamal project, which would be among the world’s largest LNG plants. Despite US objections, Russia is also fulfilling European demand by selling gas via a pipeline. According to the sources, Pakistan LNG Limited is in negotiations with Russian companies Novatek and Gazprom for importing the gas.
Despite a new deal of imports from Qatar, Pakistan now has a space on the second LNG terminal operated via Pakistan Gasport Consortium Limited (PGPC) to import the commodity. In terms of LNG imports, Qatar now controls the Pakistani market.
Previously, Saudi Arabia controlled the Pakistani oil market. Qatar, but later began to provide LNG to Pakistan. This had an impact on the oil market’s fuel supply to power plants, which had begun utilising LNG to make electricity. Sources Say Pakistan is presently purchasing LNG from Qatar and wants to use this price as a standard for other nations, including Russia. They said that Pakistan’s benchmark price might stymie the implementation of the LNG contract with Russia. Furthermore, LNG prices have risen significantly throughout the world.
Furthermore, Russia is very far away, and Pakistani LNG shipments may face higher freight costs than LNG shipments from Qatar. However, Russia may have the option of pursuing LNG cargo swaps with other businesses operating near Pakistan, which might result in lower freight prices.
LNG imports provide around 24% of Pakistan’s gas needs. The PML-N administration initially had planned to use LNG in the industrial, electricity, and commercial sectors.