LNG import: additional amount of Rs 250 billion to be paid to Qatar

The Ministry of Petroleum will pay an additional amount of Rs 250 billion to Qatar on import of Liquefied natural gas (LNG). Price for each cargo was agreed at 13.37 per cent of Brent whereas Italy's ENI had offered price of each cargo at 11.62 per cent of Brent thus resulting in huge difference of 2.16 per cent, revealed persons related to business of LNG.
National exchequer would bear said burden as price of LNG offered by Qatar is relatively higher when compared with price being offered by other international companies. Analysts believe that end of Iran's isolation would slash price of LNG by half as international community is lifting sanctions from Khamenei's state. Furthermore, Japan and South Korea are again operating nuclear power plants and this phenomenon is bringing LNG's price down in international market.
Another representative of international company said that ministry of petroleum should have issued tenders of three to five years instead of fifteen years. Last year, Pakistan and Qatar had inked agreement in Doha according to which later would provide thirty-five million tonnes of LNG gas to earlier for the period of fifteen years.