India Gives In-Principle Approval to LNG Exports Plans to Pakistan

India’s finance ministry has given in-principle approval to GAIL’s plan to export 5 million metric standard cubic metres a day (mmscmd) of LNG to Pakistan, reports Business Line.

It is likely to waive duty on the proposed export.

“The finance ministry is considering issuing an exemption notification based on the co-relation between LNG imported and re-gasified LNG exported in terms of energy units. We have been asked to find a way out and suggest a format for the same,’’ a senior petroleum ministry official said, reports Business Line.

According to the newspaper, finance ministry has expressed caution, saying any abrupt disruption of the contract can lead to many complications.

“The major worry is the loss of investment, as nearly $80 million will need to be invested for the pipeline from Jalandhar to Amritsar, and then to Lahore or the delivery point at the border. A certain quantity of LNG will also be needed to be stocked in advance in case of sudden disruption,’’ Business Line quotes a senior official as saying.

Last month Press Trust of India reported India wants sovereign payment guarantees from Pakistan before it signs a gas export contract.

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