Pakistan Wants India to Reconsider Gas Export Price

Pakistan has asked India to reconsider the high price it is asking for the gas it intends to export.

According to The Hindu newspaper, officials in the Petroleum Ministry said that while Pakistan is ready for import of gas from India through a 110-km pipeline, it has asked India to re-consider the price of gas.

India has expressed its willingness to export 400 million cubic feet of gas per day to Pakistan. However, due to tensions on the Line of Control, things are currently on the backburner.

“Negotiations on various commercial aspects of the gas export as well as pricing of gas are being negotiated by both sides. Hopefully, things would be resolved soon,” a senior Petroleum Ministry official told the newspaper.

LNG imports into India are currently in the range of $13-14 per million British thermal units and after including customs or import duty, pipeline transportation charges and local taxes, the delivered price will be close to $21, The Hindu said. LNG would be gasified by the Indian side as Pakistan does not have an LNG import facility.

For its part, India has sought sovereign payment guarantees from Pakistan before signing an export contract.

Both India and Pakistan have till date held five rounds of negotiations and it has been found technically feasible to export gas into Lahore.

GAIL India officials said gas in its liquid form will be imported through terminals in Maharashtra or Gujarat and then moved through GAIL’s existing pipeline network till Jalandhar.

Sign-up for our free weekly newsletter update via email here