Pakistan's ECC Green Lights LNG Deal With Qatar

Pakistani cabinet’s Economic Coordination Committee (ECC) has finally approved the long term LNG deal with Qatar.

According to local newspaper Dawn, ECC has allowed Pakistan State Oil (PSO) to sign Sale Purchase Agreement with Qatargas for import of LNG of around $16 billion for 15 years. As per the deal Pakistan will import 1.5 million tons a year of LNG.

The ECC had been dragging feet to approve the deal because of higher prices offered by Qatar. On Wednesday, the ECC gave a go-ahead when it was informed that Qatargas had agreed to reduce LNG price to 13.37 percent of Brent to match a bid received from Russian firm Gunvor for five years, Dawn reported.

PSO and the petroleum ministry had previously proposed an LNG rate of 13.9 percent of Brent which was considered on the higher side by majority of the energy sector experts.

Meanwhile the newspaper reported that PSO also signed five year LNG deal with Gunvor on Wednesday at price of 13.37 percent of Brent.

On Wednesday, Qatari newspaper The Peninsula reported the Pakistan's Prime Minister Nawaz Sharif will soon travel to Qatar to close the deal.