Home »Fuel and Energy » Pakistan » How IP gas, Qatar LNG deals differ from each other

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  • Sep 17th, 2017
  • Comments Off on How IP gas, Qatar LNG deals differ from each other
Iran-Pakistan (IP) gas pipeline project is available in its entirety upon request but the most critical clauses, especially those relating to price and port charges, in the Pakistan-Qatar Liquefied Natural Gas (LNG) agreement have not been made available in spite of repeated requests. This was stated by Chairman Senate Standing Committee on Finance and former finance Minister Saleem Mandviwalla while participating in Paisa Bolta Hai on Aaj News with Anjum Ibrahim.

Mandviwalla said that in an unprecedented move the then Petroleum Minister and the incumbent Prime Minister Shahid Khaqan Abbasi took the LNG case to National Accountability Bureau and got their clearance before inking the agreement, which adds to concerns that there is something fishy about the contract - a view simply strengthened by the government refusing to make it public.

He pointed out that in the IP agreement spot gas rates would have been applicable while in Pak-Qatar LNG deal the average price of three months would apply which, given that it is a buyers' market, may cause a considerable financial loss to Pakistan. He further stated the force majeure clause, in the event that Pakistan does not purchase the quantity agreed, identified capacity charges at 80 percent in the IP agreement while in LNG deal these charges are 105 percent.

Well-known public interest lawyer Mohammad Azhar Sadiq said he had requested a copy of the LNG deal as per the Right to Information Act but have not yet received any response. He concurred with Saleem Mandviwalla that each and every part of the deal should be made public.



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