ISLAMABAD: Sui Southern Gas Company Limited (SSGCL) Managing Director Shoaib Warsi has revealed that after declining trend in global market, Qatar has also cut its price offer to sell liquefied natural gas (LNG) to Pakistan from $18 per Million British Thermal Units (MMBTU) to $14, reducing price by about 22 per cent.
While talking to the media, the SSGCL MD said that the LNG prices have plummeted to around $10 per MMBTU in the spot market, but the government would be able to directly benefit spot price due to Public Procurement Rules. He said that the government was also negotiating with Petronas of Malaysia for LNG import and a competitive price deal would likely be done with Qatargas or Petronas.
“The open LNG market has further fell down to $6-7 and is expected to remain in the same price zone for about seven to eight years,” he said adding that so it would be good time for Pakistan to enter the LNG market and benefit from lower prices.
Warsi said that the government had decided not to pursue weighted average policy of gas prices after LNG imports and planned to use imported LNG in power sector to secure the other consumers from the rising trends in prices. The government had also decided to provide LNG to most efficient power plants, he added.