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Pakistan drops planned Shell LNG deal, to buy from Qatar -trade

Fri, 15th Jan 2016 13:44

By Oleg Vukmanovic

MILAN, Jan 15 (Reuters) - Pakistan State Oil has droppedplans to buy 60 liquefied natural gas (LNG) cargoes from RoyalDutch 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 submittedthe lowest price in a tender finalised late last year.

Before officially awarding the cargoes, Pakistani officialsmanaged to clinch a more favourable deal with Qatargas eventhough it was not in the original tender, sources said.

Pakistan's minister of petroleum, while finalising a delayedlong-term LNG import deal with Qatar, in parallel arranged forthe additional 60 shipments, the sources said.

Qatargas will supply the cargoes at a price of 13.37 percentof a barrel of crude oil, one of the sources said. (Reporting by Oleg Vukmanovic; editing by Jason Neely)

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