Qatar Offers to Lower Price of LNG to Pakistan

Qatar has offered lower the price of LNG that it plans to export to Pakistan.

“Qatari government has agreed to slash the LNG price further compared to its earlier offer during talks in Islamabad early this month,” a source told The Express Tribune.

The final price and volume would be discussed between ministers of the two countries in Doha on February 8, the newspaper reported.

In the beginning Qatar had offered to export LNG at a price equivalent to 14.7% of Brent crude oil rate when it was hovering around $110 per barrel in the international market. The price was later reduced to $17.437 per million British thermal units (mmbtu), a 0.5% discount over the previous rate of $18.002 per mmbtu for the 20-year lifetime of the project, The Express Tribune said.

According to the newspaper, the two countries may also discuss the possibilities of forming joint ventures between state-owned companies of the two countries like Oil and Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL).

Pakistan expects first delivery of Qatari LNG by November.

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