Pakistan is considering renegotiating LNG deal with Qatar, says minister

The Pakistani government said on Friday, it was considering renegotiating a 15-year LNG import deal with Qatar. (Shutterstock)

The Pakistani government said on Friday it was considering renegotiating a 15-year LNG import deal with Qatar, as criticism of the liquefied natural gas import and processing terminals mounts within the government of PM Imran Khan.

According to a report published by the local Pakistani DAWN website, Pakistan’s ruling party, Tehreek-i-Insaf (PTI), criticized contracts by the previous government’s party who imported LNG from Qatar at 13.39 percent of the international crude oil benchmark price. They also had two terminals built by the private sector to re-gasify the imported LNG.

Pakistani Petroleum Minister Ghulam Sarwar Khan said at a news conference that: “The price of LNG imported from Qatar is the most expensive.” The newspaper reported that he said even the prices under proposed gas pipelines from Turkmenistan and Iran were cheaper.

The minister also objected to the timeframe of the 15-year deal when the mandate was only for five years, in addition to his objection to a clause putting a bar on non-disclosure of the agreement, even three years after the expiry of the 15-year term.

Minister Ghulam Sarwar Khan confirmed that the government of Imran Khan is very much involved into investigating the agreement from both aspects, as being expensive and non-disclosure.

He pointed out that the issue could land in the International Court of Arbitration (ICA).

The Pakistani petroleum minister said the Supreme Court, National Accountability Bureau (NAB) and Federal Investigation Agency (FIA) were looking into the contracts relating to import of LNG from Qatar and two LNG terminals in Karachi and those found responsible for signing the expensive deals would be held accountable.

Last Update: Wednesday, 20 May 2020 KSA 09:58 - GMT 06:58