China Petroleum Pipeline Bureau (CPP) has reduced its price offer for a gas pipeline deal with Pakistan, after having concluded negotiations with the government in Islamabad, according to The Express Tribune.

Pakistan and the Chinese company have initialed an agreement for building a 700km long liquefied natural gas (LNG) pipeline and two compressor stations. The pipeline was to carry the re-gasified natural gas (RLNG) from the proposed FSRU at Gwadar deep sea port at a price of $1.5b, but now the deal has been lowered to $1.3b, wrote Blogarama.

The Express Tribune quoted an official saying: “The revised cost is even less than the cost at which gas utilities – Sui Northern Gas Pipelines and Sui Southern Gas Company – are augmenting their existing pipeline network to enhance the transmission capacity to 1.2bcf/d.”

The Export-Import Bank of China has already made offer to Pakistan in financing the Gwadar pipeline projects, Islamabad is currently negotiating a loan. China has proposed to provide loans for financing up to 85% of each of the projects.