LNG price being negotiated: petroleum minister

It will not be disclosed until finalised, Abbasi tells National Assembly.

ISLAMABAD: Liquefied natural gas (LNG) prices are still being negotiated in relevant forums, according to Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi.

Meanwhile, the government assures that the LNG rate would be lower in Pakistan than anywhere in Asia.

Answering a question in the National Assembly regarding the import of LNG and its price, the minister said credit goes to the PML-N government that LNG import has been made possible, adding the government is responsible for providing relief to the consumers.

He said terms and conditions for the sale and purchase of LNG, including its price, are being negotiated with Qatargas. All aspects of the deal are being considered.



He said it has been decided that issues related to the LNG deal would not be discussed openly before it is finalised, adding a parliamentary committee may also be set up to work on the LNG price and its import.

He said the first ship carrying 60,000 tons of LNG would arrive at the Port Qasim on March 31. “It will contribute two billion cubic feet of gas to the system,” he said “and will save $300 million for the power sector.”

Abbasi added after hectic efforts, the government has developed a world-class LNG terminal in a span of 11 months. It has also been decided that any third party or consumer can import LNG and can use it freely. Answering another question regarding comparison of rates, the minister said LNG import rates differ in every country and the big importers of LNG in Asia are Japan, India, Korea and China. To a question regarding names of countries or companies with which the government is negotiating the import of LNG, the minister replied that the government has designated Pakistan State Oil to negotiate the import of LNG on government-to-government basis with Qatargas, which has been designated by the state of Qatar. Moreover, preliminary meetings have also been held with Petronas – Malaysia’s designated entity – and PB Trading Sendirian Berhad – Brunei Darussalam’s designated entity – to initiate discussions on potential supply of LNG to Pakistan. 

Published in The Express Tribune, March  26^th,  2015.

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