KARACHI, Pakistan - Pakistan LNG Ltd (PLL), a state-run gas importer, has signed a deal to supply gas to K-Electric Ltd's upcoming 900 megawatt plant, the country's power ministry said on Tuesday, the first such agreement between a public and a private company in the sector.

Pakistan has been relying on imported LNG over the last few years as its local gas output has declined, while domestic demand has climbed. The power sector alone accounts for about 38% of gas consumption in the country, according to a report by Oil and Gas Regulatory Authority issued last year.

"This is the first agreement of its kind where RLNG (re-gasified liquefied natural gas) is being directly supplied by a government entity to a private sector company," the ministry said in a statement.

PLL, which has agreed to supply 150 million cubic feet per day (mmcf/d) of RLNG to K-Electric, had last year signed an initial supply deal with the company, as part of Pakistan's push to cut its carbon emissions. 

Bin Qasim Power Station -III is K-Electric's flagship project that is valued at over $600 million and is expected to add 900 MW of power to meet the growing needs of Pakistan's industrial hub, according to the statement.

"It is a step in the right direction for the future of Karachi and a positive move for both KE and PLL which ensures the interests of both parties as well as the port city," Pakistan's energy minister, Hammad Azhar, said.

(Reporting by Syed Raza Hassan; Editing by Anil D'Silva) ((raza.hassan@thomsonreuters.com;))