Mubasher: Pakistan’s government revealed that it has saved $600 million over the first 10 years of a liquefied natural gas (LNG) supply deal with Qatar, by making LNG suppliers compete aganst each others.
A report from the state’s oil marketing company showed how the deal signed two years ago with the world’s largest supplier of LNG started to be effective, Bloomberg News reported.
Th report shed light on the high-stakes energy deals, which are almost exclusively settled behind closed doors and stay hidden from public scrutiny.
“The maneuvering by Pakistan came after two years of negotiations hit an impasse as Qatar refused to lower its offer price for LNG,” according to Bloomberg.
As a result, Pakistan "sought leverage on" the open market by 2015-end, publicly seeking 120 LNG shipments in two large tenders, "which brought in bids from suppliers including Royal Dutch Shell Plc and BP Plc," it added.
The Pakistan's strategy contributed to slashing prices with Qatargas and saved $610 million, the report highlighted.