Qatar Wants $2 billion Sovereign Government Guarantee for LNG Supply to Pakistan

Qatar has sought a $2 billion sovereign government guarantee from Pakistan for supply of LNG, says The News International.

Authorities in Doha have also told Islamabad that if Pakistan does not accept its demand, then it will seek $450 million bankable guarantee stressing the said bank should be outside Pakistan, adds the news report.

Qatar has also conveyed that it is willing to provide 200 million cubic feet gas per day to Pakistan at the price of 14.5 percent of Brent and 50 cents per MMBTU as transportation cost.

The News International reports that Doha wants the price formula to be fixed for 20 years but Pakistan wants a review of the price after every three years and does not want to link the LNG price with Brent under a fixed formula for a long period of 20 years.