Pakistan, Algeria in LNG Supply Talks

With LNG supply deal with Qatar in a deadlock over price, Pakistan has started negotiating supply deals with Algeria at a price lower than the international market price. Qatar has refused to bring down the price from $18 mmBtu to $16 mmBtu, as requested by Pakistan.

Pakistani media reports said that Mustafa Bin Bada, Algerian Minister for Trade and Asim Hussain, Federal Minister for Petroleum discussed the possibilities of LNG import, adding that both sides would hopefully settle all formalities soon.

Pakistan has been facing severe energy shortage in recent year and has been trying frantically to negotiate supply deals from various sources.

The government also wants to complete LNG project by the end of 2012 and for this purpose the government has also engaged public sector gas utilities to build required infrastructure.

According to Pakistani government officials the country is currently facing a gas shortage of 1.5 to 2 Billion Cubic Feet (BCF) which within next two to three years is expected to reach 3 BCF.