Doha Will Take a Fortnight to Respond to Pakistan's Demand of Cut in LNG Price

Qatar will take about 10 to 15 days to respond to Pakistan’s demand for reduction in price of LNG, according to Pakistani media reports.

Pakistani oil minister Shahid Khaqan Abbasi visited Qatar on Wednesday to discuss the matter. “Pakistan has sensitised the authorities in Qatar about the Economic Coordination Committee (ECC) decision asking for reduction of LNG price to 13.39 percent of Brent from 13.9 percent of three months’ average price of Brent earlier agreed between the two sides for 15 years under government to government mode,” the minister told The News, a local newspaper.

The EEC had earlier rejected the Qatari offer of LNG price at 13.9 percent of three months’ average price of the Brent saying that Pakistan State Oil (PSO) has managed the procure LNG at 13.39 percent of the Brent through tenders.

Pakistan and Qatar have been negotiating a long term LNG deal but the matter has been stuck on the issue of price. For the short term, the government has been importing the fuel via tenders. 

The South Asian nation has been struggling to meet the rising domestic demand for gas. The gas shortage has resulted to disruption of industrial activity and resulted in power outages. 

Pakistan’s LNG needs will swell to over 4 million tons per annum by March 2017, the minister stated.