Qatar is displeased upon knowing that Pakistan has floated tenders for 10 years seeking provision of LNG from international companies after getting the lowest offer from Qatar.
Islamabad (Pakistan Point News – 16th July, 2019) Qatar is annoyed over Pakistan’s move to float tenders seeking LNG supply for 10 years saying it is really irritating for Doha.
According to a report published in The news, Qatar has expressed its resentment upon knowing that Pakistan has floated tenders for 10 years seeking provision of LNG from international companies after getting the lowest offer from Qatar.
Qatar is currently supplying 500mmcfd to Pakistan under a 15-year agreement at 13.37% of Brent crude price. Under 15-year agreement, after 10 years, LNG price can be reviewed.
However, under new offer from Qatar for 200mmcfd more supply to Pakistan, price review was to be held after 5 years’ time at a price which is 20 per cent below from the earlier price.
Qatar which regulates the 75 per cent of LNG market shared its dismay with authorities in Pakistan that companies that are to win the tenders will also purchase the product from Doha.
Pakistan wants 400mmcfd more LNG for which it earlier signed Inter-Governmental Agreements (IGAs) with almost seven countries. Companies of three of three countries came up with their bids. The authorities in Pakistan shared the lowest bid of the three countries with Qatar. Then Qatar first gave LNG supply at lower cost of 11.25% which it later on further reduced the cost at 11.05 per cent.
Authorities in Qatar got annoyed when its offer was shared in the press and when the government’s company Pakistan LNG Limited (PLL) floated tendered for 10 years seeking LNG provision, the report added.
