Featured Pakistan Buys Cheapest LNG (Gas) 230% Cheaper than Qatri LNG

[Pappa Alpha]

Do you think these are simple mathematical problems?

no, it surely must be rocket science.

 

[Path-Finder]

Do you think these are simple mathematical problems?

how many other nations have done the same?

 

[Yaseen1]

now govt should also provide relief to public as utility bills are much higher these days and also sngpl is at verge of becoming loss making organisation

 

[El Sidd]

no, it surely must be rocket science.

it is once you get in the decision making chair

how many other nations have done the same?

almost all.

 

[PakFactor]

it is once you get in the decision making chair



almost all.

 

[achhu]

no, it surely must be rocket science.

if you get out of it without proper settlement , you will end up paying a large sum after arbitration , this is not a shop where you can simply say by by .

 

[Path-Finder]

almost all.

name some stupid enough to do this!

 

[volatile]

A question for the forum tooi wal!! why are we forcefully purchasing Qatari LNG? @volatile @Pakistan Space Agency @El Sidd etc..

If it was taunt ignore my comments if you really want to learn then it is based on one or few broken lots .Do you know what broken lots are ? Also still Qatari LNG is/will be cheapest as it is hedge to fuel basket @8% so if average fuel bucket is 40 US$ it comes to 3.2 US$ .For your information broken lots are one off events not regular buys .Good day

 

[farok84]

Also still Qatari LNG is/will be cheapest as it is hedge to fuel basket @8% so if average fuel bucket is 40 US$ it comes to 3.2 US$ .

Hi,

Wasn't the contracted price 13.37% of Brent Crude (averaged for three preceding months). Did Qatar lowered that price for us? I believe Qatar declined Asad Umar's request last year, as it may push it to revisit it's other contracts in the region.

why are we forcefully purchasing Qatari LNG?

Hi,

It is because the great minds at work then, forgot to add the legal provision of force majeure in the contract, which could have been exercised in conditions like epidemics and quarantine conditions. Pakistan did exercise this clause with their Eni (11.95% of Brent for a 15 year term) & Guvnor (11.62% of Brent for a 5 year term) contracts and appeared to have cancelled/ postponed deliveries, and sourcing demand through spot market prices (ofcourse at a lower rate, not owing to great negotiation skills of our current lot of great minds, but because of dip in demand and abundance in availability and production of oil and gas in international markets). But, credit should be given to GOP for taking the decision to buy LNG from spot market and exercising postponement clause in ENI & Guvnor contracts.

So the pissy excuse is, that NOW!! in the present prices are down globally!

BUT that doesn't explain. WHY we are in a CONTRACT to buy LNG from Qatar on a FIXED PRICE!

WHY?

That is how it is done globally. Still, 70-75% of LNG market is under fixed price long term contracts, which can be revisited after certain number of years (if applicable), like in our Qatar deal, which can be revisited after 10 years. Please note Qatargas II is a joint venture of Qatar Petroleum and ExxonMobil, it is not entirely a Qatar contract.

In my opinion, it is not the fixed price that is the cause of problem, but how it was fixed. Following points can be pondered upon for a healthier discussion.

1. 'take-or-pay' clause of the contract.
2. the higher percentage that is 13.37% (in contrast to 11.6 to 11.9% of Guvnor and ENI's contracts)
3. Overestimation of demand, while we didn't have sufficient infrastructure (regasification terminals) in place.
4. Limited or non existent volume flexibility.

 

[Path-Finder]

If it was taunt ignore my comments if you really want to learn then it is based on one or few broken lots .Do you know what broken lots are ? Also still Qatari LNG is/will be cheapest as it is hedge to fuel basket @8% so if average fuel bucket is 40 US$ it comes to 3.2 US$ .For your information broken lots are one off events not regular buys .Good day

well educate us. what are those technical jargon things and how does all of that tie us in a contract, which means we buy LNG at a high fixed price which is globally lower to add further? why did we buy ~$2 mmbtu now as compared to we MUST BUY AT FIXED PRICE FOR A LONG PERIOD!!

I don't want technical yahvian and bongian to justify the kartoot and you show yourself as some intellechawal either.

 

[Path-Finder]

Hi,

It is because the great minds at work then, forgot to add the legal provision of force majeure in the contract, which could have been exercised in conditions like epidemics and quarantine conditions. Pakistan did exercise this clause with their Eni (11.95% of Brent for a 15 year term) & Guvnor (11.62% of Brent for a 5 year term) contracts and appeared to have cancelled/ postponed deliveries, and sourcing demand through spot market prices (ofcourse at a lower rate, not owing to great negotiation skills of our current lot of great minds, but because of dip in demand and abundance in availability and production of oil and gas in international markets). But, credit should be given to GOP for taking the decision to buy LNG from spot market and exercising postponement clause in ENI & Guvnor contracts.

That is how it is done globally. Still, 70-75% of LNG market is under fixed price long term contracts, which can be revisited after certain number of years (if applicable), like in our Qatar deal, which can be revisited after 10 years. Please note Qatargas II is a joint venture of Qatar Petroleum and ExxonMobil, it is not entirely a Qatar contract.

In my opinion, it is not the fixed price that is the cause of problem, but how it was fixed. Following points can be pondered upon for a healthier discussion.

1. 'take-or-pay' clause of the contract.
2. the higher percentage that is 13.37% (in contrast to 11.6 to 11.9% of Guvnor and ENI's contracts)
3. Overestimation of demand, while we didn't have sufficient infrastructure (regasification terminals) in place.
4. Limited or non existent volume flexibility.

I am a layman. You have great knowledge on the subject and I don't but trying to get a better understanding of things. My question is simple. It is clear as daylight that not now but this issue of khaqan bassi along with the front man in qatar who's name I forget were the forefront of this deal! this issue has been ongoing for few years now. when the issue of Qatari LNG rose up few years ago then some experts said in the media that LNG is widely available and its getting cheaper so why are we in a fixed price contract!

In the most simple terms we are in a contract with a clause that means Pakistan is dragged to the International court if we don't buy Qatari LNG! The Gov by purchasing cheaper LNG and tendering for LNG at lower price means a corrupt malpractice has been done with the nation.

 

[AZADPAKISTAN2009]

Nawaz Sharif special thank you to Qatri Prince

 

[Death Adder]

What’s here to debate? You haven’t provided us any historical data or similar LNG deals to see a broader picture. Secondly, the article doesn’t mention 230% cheaper figure.

It’s really annoying people creating usless threads to spreads their monitize youtube videos with sensational headlines.

I request Mods to seriously consider banning these private youtube channel links on PDF, unless they are giving some benefit to PDF.

 

[Path-Finder]

What’s here to debate? You haven’t provided us any historical data or similar LNG deals to see a broader picture. Secondly, the article doesn’t mention 230% cheaper figure.

It’s really annoying people creating usless threads to spreads their monitize youtube videos with sensational headlines.

I request Mode to seriously consider banning these private youtube channel links on PDF, unless they are giving some benefit to PDF.

do you see the featured in Green before the tile. IF this was just some nuisance then why did Mods decide to share this topic and thread on their social media to get this to a wider audience? Mods can easily close the topic down if they think its useless, sensational etc.

Lets ask the Mods @WebMaster

 

[Death Adder]

do you see the featured in Green before the tile. IF this was just some nuisance then why did Mods decide to share this topic and thread on their social media to get this to a wider audience? Mods can easily close the topic down if they think its useless, sensational etc.

Lets ask the Mods @WebMaster

I have no problem with the thread, i am talking about youtube link. As soon as i clicked, ad came up. Which makes me think it could be an attempt to promote private monetize youtube channels, as far as 230% cheaper figure is concerned its not present in the article.