Pakistan, Qatar LNG Talks Unresolved

Negotiations between Pakistan and Qatar over import of LNG have hit a snag, according to Express Tribune, a Pakistani newspaper.

The talks regarding imports, to be done on a government-to-government basis, have been stuck on the issues of mode of payment and issuance of standby letter of credit (SBLC) by independent power producers (IPPs).

Currently, Pakistan State Oil (PSO) is importing LNG through spot purchases after failing to finalise the government-to-government LNG trade deal with Qatar, Express Tribune reported.

Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi said, “The power sector has not yet provided guarantees for LNG payments, but we are close.”

All arrangements with Qatar had been finalised except the payment mechanism and this is proving to be a thorn in taking the agreement forward, Express Tribune said adding that Qatar wants the Pakistani government to ensure the payment mechanism, especially given the country’s circular debt issue that has plagued the power sector.