India May Provide LNG to Pakistan Under Favourable Terms
From The Express Tribune
ISLAMABAD: As a major confidence building move, India has said it will follow the gas pricing formula that is to be implemented in fuel imports through the Iran-Pakistan (IP) gas pipeline project for the LNG it earlier offered to export to Pakistan.
“Pakistan had linked gas price to 78% parity of crude oil with some discounts under the Iran-Pakistan (IP) gas import project. Now India wants to link the price of LNG it exports to Pakistan with the price of Brent crude, along a pattern similar to the IP gas pipeline project,” sources revealed; adding that an Indian team is scheduled to reach Islamabad on Thursday (today) to break ground on the LNG pricing issue.
India had offered to export 200 million cubic feet per day (mmcfd) of LNG to Pakistan, transported through its territory to the Wagah border via a pipeline.
Sources said that during a meeting held in the first week of September, the two sides had discussed the pricing formula of LNG that was to be imported by Pakistan, and had considered whether it should be linked to the prices of furnace oil or crude oil.
