Pakistan, Qatar close to revised LNG deal
Pakistan seeks lower LNG pricing formula, Final offer sets 11.96% Brent pricing, PSO awaits cabinet nod to seal
Qatar and Pakistan are nearing an agreement on a revised $5 billion LNG deal. Current arrangements include two supply contracts expiring in 2031. Pakistan initially sought a reduction from 13.37% to 10.20% of Brent pricing for the first contract, but Qatar eventually agreed to lower the price to 11.36%. For the second contract, Qatar proposed a price increase to 11.98%.
In the final offer, Pakistan will decide on the revised price of 11.96% for both contracts, which would cover 66 cargoes annually, down from the existing 108 cargoes. Surplus LNG supply due to declining demand prompted the government to authorize PSO to reduce LNG deliveries by two cargoes per month, resulting in 24 cargoes being cut under the Net Proceeds Differential arrangement. Both parties have until November 3 to finalize the deal, which is subject to government approval.
Written by urgent.news from The Express Tribune - Pakistan's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
