US Declines to Supply LNG to Pakistan

The United States has refused to enter into a LNG supply deal with Pakistan on a state-to-state basis and has instead suggested that Islamabad strike an agreement with Qatar for gas import, The Express Tribune newspaper reported Friday.

“US is pressing Pakistan to source LNG supplies from Qatar in a government-to-government contract, but it will cost around $19 per mmbtu,” an official told The Express Tribune.

Experts have told the newspaper that the government could not afford to pay such a high LNG price to Qatar as Islamabad could afford a price that is in the range of $13 to $15 per mmbtu.

According to the newspaper, the Pakistani government has been upset over the US response towards a country which has been strategic partner since long.

The US also does not favour Iran-Pakistan (IP) gas pipeline, which could have provided Pakistan with cheaper Iranian gas, and instead wants Pakistan to pursue TAPI gas pipeline project. However, many officials believe that IP project, which was at an advanced stage, has been all but shelved.

Also, TAPI project at this stage is far from reality because of the unrest in Afghanistan, The Express Tribune said.

Meanwhile, Pakistan State Oil has floated a tender, seeking bids for LNG import. The government is working on three options to secure LNG supplies which include spot purchases, floating tenders and a government-to-government contract with Qatar, the newspaper said.