Confusion over price of LNG from Qatar

Published March 25, 2015
— Reuters/file
— Reuters/file

ISLAMABAD: Confusion persists over the liquefied natural gas (LNG) deal with Qatar as the government has not yet disclosed the per MMBTU price of gas.

Earlier, it was expected that details of the agreement would be made public during the visit of Emir of Qatar Sheikh Tamim Bin Hamad Al-Thani that concluded on Tuesday. The agreement for import of LNG from Qatar was signed on March 13.

During the visit of the Emir of Qatar, many MoUs were signed in energy, trade, economic, investment, manpower and defence.

Under the $22 billion reported deal, Qatar agreed to supply 500 million cubic feet of LNG per day for 15 years. However, there was no official word on LNG deal and details about the rate of the purchase and sale price.

Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi stated recently that first shipment of LNG would reach Pakistan by the end of March. He also claimed that power generation cost through LNG would reduce by 40 per cent as compared to diesel.

When contacted, a senior official of the petroleum ministry said: “Some of the portion of the deal had been signed during the last Pakistan People’s Party (PPP) government by the then petroleum minister Dr Asim Hussain.”

About the price of LNG to be paid to Qatar, he said that due to recent decline in prices of petroleum products and its effect on other commodities, the price of LNG to be imported from Qatar has not been ascertained.

He was, however, of the view that it could be between $9 and $10, but its efficiency would be more than the furnace oil being used in power sector.

Actually the entire deal had already been signed; hence the details were not made public during the recent visit of Emir of Qatar, he maintained.

According to an official handout, the Qatari side expressed interest in enhancing the number of Pakistanis working in Qatar on development projects. Both the sides agreed to take measures to enhance trade and strengthen cooperation.

Pakistan and Qatar also signed agreements to further deepen cooperation in education, scientific research, media, culture, youth and sports. The agreements were signed following the delegation level talks between the two countries.

Published in Dawn March 25th , 2015

On a mobile phone? Get the Dawn Mobile App: Apple Store | Google Play

Now you can follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Another U-turn?
Updated 07 Oct, 2022

Another U-turn?

The PTI’s decision to take back its resignations could herald a twist in the tussle playing out in Islamabad.
Renewed TTP threat
07 Oct, 2022

Renewed TTP threat

THE interior ministry’s call for ‘extreme vigilance’ and instructions to security forces to conduct ‘search...
Women’s gala in GB
07 Oct, 2022

Women’s gala in GB

REGRESSIVE forces, once again, nearly had their way — this time in Gilgit-Baltistan. A three-day sporting gala for...
‘Draconian’ law
06 Oct, 2022

‘Draconian’ law

THE debate over what it means to be ‘sadiq’ and ‘ameen’ has reignited after the incumbent Supreme Court ...
Welcome clarity
Updated 06 Oct, 2022

Welcome clarity

There needs to be consensus amongst all political actors that matters of governance should be the exclusive domain of civilians.
Car purchases
06 Oct, 2022

Car purchases

IF we are in the market to buy a new car, we end up paying a significantly large amount as premium over the sticker...