Pakistan Cancels Shell LNG Deal, Cites Price as ReasonPosted by Joseph Keefe
Pakistan State Oil has dropped plans to buy 60 liquefied natural gas (LNG) cargoes from Royal Dutch Shell after receiving a lower price from Qatar, two trade sources with knowledge of the matter said on Friday.
Pakistan was to buy from Shell after the oil major submitted the lowest price in a tender finalised late last year.
Before officially awarding the cargoes, Pakistani officials managed to clinch a more favourable deal with Qatargas even though it was not in the original tender, sources said.
Pakistan's minister of petroleum, while finalising a delayed long-term LNG import deal with Qatar, in parallel arranged for the additional 60 shipments, the sources said.
Qatargas will supply the cargoes at a price of 13.37 percent of a barrel of crude oil, one of the sources said.
Reporting by Oleg Vukmanovic