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New LNG contract with Qatar is 31% cheaper: Nadeem Babar

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ISLAMABAD, Pakistan: The Prime Minister’s Special Assistant on Petroleum Nadeem Babar has said that the new 10-year Liquefied Natural Gas (LNG) contract signed with Qatar is 31 percent cheaper as compared to the previous agreement.

While addressing a News Conference in Islamabad on Friday, the Special Assistant said that it is the lowest publicly disclosed LNG contract in terms of price in the world.

The Special Assistant said that this deal will help the Country save Rs 316 million annually. It will make a difference of US$ 3 billion for 10 years.

Nadeem Babar said that the previous agreement with Qatar was for 15 years under which the price was fixed for 10 years. He said that the new agreement however envisages price reopening after four years.

In addition, he said that under the previous agreement, the letter of credit worth US$ 170 million was given to Qatar but under the new arrangement, Rs 84 million will be given to the fraternal Country.

The Special Assistant on Petroleum said that under the new agreement, the Country will receive two LNG ships on average per month, and in a period of three years, the number of ships will increase to four.

Nadeem Babar further said that the new agreement will be effective from January 2022. However, there is a provision that the Country can get the LNG by the end of 2021.

Mati
Mati-Ullah is the Online Editor For DND. He is the real man to handle the team around the Country and get news from them and provide to you instantly.

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