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Pakistan State Oil allowed to sign $16 billion LNG deal with Qatar

Staff writer |
The government allowed Pakistan State Oil (PSO) to sign LNG Sale Purchase Agreement (LSPA) with Qatargas for import of liquefied natural gas (LNG) of around $16 billion in 15 years at a relatively lower rate.

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The decision was taken at a meeting of the Economic Coordination Committee (ECC) of the Cabinet presided over by Finance Minister Ishaq Dar which also allowed export of 600,000 tonnes of wheat at about Rs3.5bn subsidy.

The ECC had been dragging feet to approve the LSPA with Qatar because of difference of opinion over its legalities and higher prices offered by Qatar.

The ECC gave a go-ahead when it was informed that Qatargas had agreed to reduce LNG price to 13.37 percent of Brent to match a bid received from Russian firm Gunvor for five years.

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