Qatar and Pakistan agree $16 billion dollar gas deal

Qatar signed multi-billion dollar gas deal with Pakistan on Wednesday, which will see Doha export up to 3.75 million tonnes of liquefied natural gas a year, according to Pakistan's petroleum minister, Shahid Khaqan Abbasi.

This represents around 20 percent of the south Asian country's gas requirements.

Qatar's state news agency confirmed the deal had been signed in a statement posted on its website and said exports could begin as early in March.

Pakistan media estimated the deal was worth $16 billion.

Abbasi told Pakistan media that the deal was a "game-changer" for his country, and the deal would help save the country one billion dollars annually.

Pakistan currently faces a severe shortage of natural gas, both for its electricity generation and industrial use.

The deal was signed on the first day of two-day visit to Qatar by Pakistani Prime Minister Nawaz Sharif.
 

The Gulf state has quantities of off-shore gas reserves and is said to have enough to last 138 years.

Meanwhile, Doha announced that state-owned Qatar Petroleum reached a deal with Chevron to acquire 30 percent of its stake in offshore drilling areas in Morocco.

Under the terms of the deal announced Monday, Chevron will hold onto a 45-percent interest in the offshore leases, while Morocco will retain a 25 percent stake.

Qatar Petroleum says the Moroccan government has approved the deal.