Middle East recently has plunged into grave political crisis soon after the Gulf bloc including Saudi Arabia, Egypt, United Arab Emirates (UAE), and Bahrain decided to cut all ties with Qatar. It was believed that Pakistan might be the one to suffer from this because of the political turmoil it’s likely to brew, in the wake of a contract between Pakistan and Qatar to import LNG from Qatar Petroleum into the country.
However, the petroleum company said there would be no impact on the LNG supply to Pakistan despite the worsening diplomatic and political situation in the region. President and CEO of Qatar Petroleum, Saad Sherida Al-Kaabi said that the energy supply would be continued to all the countries without any interruptions as necessary arrangements had been made by the company to remain unaffected by the changes in the region’s political condition.
Al-Kaabi said, “On behalf of Qatar Petroleum and our operating ventures, I would like to express our gratitude to all our valued customers, and in particular to our LNG customers, and would like to assure them of our determined efforts to continue uninterrupted supplies as the world’s most reliable LNG supplier.”
While the clarification from Qatar came now, Pakistan had already made it clear that there would be no issues with the import of gas from Qatar. Minister of Petroleum and Natural Resources, Shahid Khaqan Abbasi said that they would continue to import gas from Qatar in order to solve energy crisis in Pakistan.
Energy crisis in Pakistan has increased enormously in Pakistan and LNG is now the utmost important energy source to curb the crisis. If the LNG supply was disrupted from Qatar, Pakistan would have suffered a serious blow in its struggle against energy crisis. Currently, 500 million cubic feet LNG is imported per day which is equivalent to 12% of the overall gas supply of the country.
Abbasi said that it was a commercial contract with Qatar and this would enable them to continue the import of LNG in the country. No sanctions had been imposed by any world body on Qatar and thus cancellation of the contract is not an option for both the parties who will continue to fulfill their contracts.
Qatar is currently the largest LNG producer and exporter in the world with major LNG consuming countries importing LNG from Qatar only.