Daily Times

ISLAMABAD: The government said on Thursday that the deal sealed with Qatar for import of Liquefied Natural Gas (LNG) at the price of $4.78 dollars per mmbtu was the cheapest of its kind in South Asia.

Prime Minister’s spokesman Dr Mussaddiq Malik told a press conference that the landmark deal would save Rs 100 billion per annum and would contribute to meeting the country’s energy needs by 25 percent. Malik said the settled price was the 13.37 percent of the brent and was cheaper than the gas to be imported through Iran-Pakistan and Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline projects. He said even the India’s LNG contract was expensive by 30-35 percent than Pakistan’s deal with Qatar. He said LNG would be cheaper than Pakistan’s indigenous gas.

Malik said the import of LNG from Qatar would start within 60 days. The spokesman said the cabinet had in 2013 given approval to the government-to-government deal between Pakistan and Qatar for LNG’s import. He said the negotiating committee comprising members of the two countries undertook 12 rounds of meeting before agreeing to the price. He said Pakistan had signed the contract of non-disclosure of LNG’s price till the signing of agreement, which was inked during Prime Minister Nawaz Sharif’s visit to Qatar on Wednesday. He said the price of LNG was linked with global oil prices and would increase or decrease accordingly.

Pakistan and Qatar Wednesday inked the $16 billion LNG deal that would enable the energy-starved country to import natural gas for 16 years and to meet its energy requirements. Talking to media at the signing ceremony, Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi said the LNG deal with Qatar, which was the biggest gas producer in the world, was a game changer for Pakistan.