Pakistan is expected to request Qatar to reduce its liquefied natural gas (LNG) supplies under a ‘take or pay’ long-term contract as its energy demand tumbles amid an economic slowdown.
Informed sources told Dawn that the proposal for fresh talks with Qatar had come up for discussion at a meeting of the Economic Coordination Committee (ECC) of the cabinet on Nov 28 as part of risk mitigation on account of privatisation of two LNG-based 2,650MW power plants of National Power Parks Management Company (NPPMC) — Haveli Bahadur Shah and Balloki in Punjab.
The proposal to take up the challenge with Qatar was floated by Dr Abdul Hafeez Shaikh, Adviser to the Prime Minister on Finance, according to sources in the petroleum ministry.
Nadeem babar, Special Adviser to the PM on Petroleum, informed the ECC that an earlier attempt at the highest level for reduction in LNG price was not acceptable to Qatar. He recalled that during a visit of Prime Minister Imran Khan to Doha earlier this year, Qatar was requested by then finance minister Asad Umar to reduce the price of LNG being supplied to Pakistan (at 13.37pc of Brent) under a 15-year contract.
