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Eni wins 15-year contract for LNG supply in Pakistan

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Reuters are reporting that Eni has announced that it has secured a 15-year, 11 million t LNG deal to supply state-run importer Pakistan LNG, ending months of negotiating over the cost of the supplies.

The announcement of the deal has been delayed since January when Eni emerged as the winner of a tendering to Pakistan LNG to secure vital supplies for the country's gas-starved domestic market.

At issue was trading house Gunvor's deal to supply Pakistan with LNG for five years, in a separate but parallel tender, at a price significantly below that which Eni submitted in its 15-year offer.

While Pakistan swiftly approved Gunvor's deal, officials there started negotiations aimed at persuading Eni to more closely align its prices with that of Gunvor.

Gunvor's winning bid for the five-year supply tranche came in at 11.6247%, and Eni's winning bid for the 15-year tranche was 12.29%.

Eni will source most of the LNG for Pakistan from Indonesia.

Eni believes new LNG production will be required early in the next decade and has committed to developing its own LNG business in areas like Indonesia and Mozambique.

Last year it agreed to sell to BP its entire output from the Coral floating LNG production plant in Mozambique for a period of 20 years.

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