Pakistan to renegotiate controversial multi billions dollar LNG deal with Qatar: Sources

Pakistan to renegotiate controversial multi billions dollar LNG deal with Qatar: Sources
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ISLAMABAD - Pakistan to renegotiate the controversial LNG deal worth billions with Qatar if evidences of corruption and commission kick backs are found in the project.

National Accountability Bureau (NAB) is already probing the 15-year liquefied natural gas supply agreement between the Pakistan State Oil (PSO) and Qatargas in February 2016.

If any evidence of irregularity, such as a violation of the Public Procurement Regulatory rules, is found, the government would seek to renegotiate the agreement.

Speaking to this correspondent on Friday after a meeting of the Senate Standing Committee on Petroleum, the minister for petroleum Ghulam Sarqar has said the NAB Karachi is actively investigating the long-term LNG deal with Qatar and the award of the contract for the first LNG receiving terminal.

When his attention was drawn to the binding take-or-pay terms of the agreement with Qatargas, Sarwar argued India has previously renegotiated the off-take volumes and prices of LNG deals with Qatar , Australia and Russia. He said a petroleum ministry committee is also examining the agreement with Qatar for any other lacunae.

At a Senate committee hearing chaired on Friday by Senator Mohsin Aziz of the ruling Pakistan Tehreek-i-Insaf, the managing director of PSO, Imranul Haq Sheikh, said a price negotiating committee had agreed with Qatargas on an LNG price equivalent to 13.37 percent of the rate, for the benchmark Brent grade of crude oil.

“Though the deal with Qatar can only be renegotiated after 10 years, if Pakistan formally contacts with Qatar , it may be possible to review the deal,” Sheikh said.

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