Conoco to Help Pakistan, Qatar Ink LNG Deal

US energy giant ConocoPhillips is mediating between Pakistan and Qatar to enable them to strike a multi-billion-dollar liquefied natural gas (LNG) deal.

The move is aimed at driving Islamabad away from the Iran-Pakistan (IP) gas pipeline project due to tensions between the West and Tehran, The Express Tribune reported.

Earlier, Qatar had asked Shell to finalise the LNG contract with Pakistan, which could not be reached due to controversy over the Mashal LNG import project.

Pakistan and Qatar have already signed a memorandum of understanding, under which Islamabad will import 500 million cubic feet per day (mmcfd) of LNG to generate 2,500 megawatts of electricity.

According to the term sheet, Qatar had demanded a price of $18 per million British thermal units (mmbtu) for LNG supply. In response, Pakistan quoted a price of $10 per mmbtu.

The US has said that Pakistan should shelve the IP project, and has called for inking an LNG deal with Qatar to meet the country’s pressing energy needs.