Pakistan is Considering Killing 2 LNG Deals: Bloomberg

[AZADPAKISTAN2009]

Cancelling mega deals is not easy and giving up massive fines and penalties is not proper
Why don't they cancel their Mega pipeline deal maybe pay penalties for cancellation?


Look at CANADA , building pipeline over native land and then not paying a single extra dime

It took 3-4 years of negotiation before Gas deals were signed between Pakistan and other countries why keep reinventing the wheel over and over again


$300 million is no loose change it is alot of money

 

[jupiter2007]

Losing 300 million is more important than losing billons by buying the gas from these companies???
Government should cancel the deal to send a strong message that no more kickbacks.

 

[niaz]

@niaz Comments?

Under current circumstances, every buyer would like to cancel or renegotiate the price. Had the price gone the other way, would the sellers not try the same?

If you read the terms of Pakistani or Indian or any other country contract there is always a 'Performance' guarantee clause and a 'Force Majeure'clause.

Needless to remind everyone that no one could have foreseen in 2017 the virtual shutdown of the 2nd largest economy in the world due to coronavirus. On the contrary, there were more chances of a war breaking out between the USA /Saudis and Iran, which would cause the oil as well as LNG prices to skyrocket.

I have already posted that Pakistan has also approached Qatar to reduce the LNG price. Let us see what happen

 

[Flight of falcon]

Yo

Under current circumstances, every buyer would like to cancel or renegotiate the price. Had the price gone the other way, would the sellers not try the same?

If you read the terms of Pakistani or Indian or any other country contract there is always a 'Performance' guarantee clause and a 'Force Majeure'clause.

Needless to remind everyone that no one could have foreseen in 2017 the virtual shutdown of the 2nd largest economy in the world due to coronavirus. On the contrary, there were more chances of a war breaking out between the USA /Saudis and Iran, which would cause the oil as well as LNG prices to skyrocket.

I have already posted that Pakistan has also approached Qatar to reduce the LNG price. Let us see what happen

absolutely right and one more thing the prices are not just down because of excessive supply but LNG use by countries is also reducing rapidly.

With Americans supplying more oil than Saudis and Russians opening up their LNG supplies the world is seeing unprecedented supply and never before seen levels of renewable energy projects. The problem with LNG is also to do with its upstream supply which requires a pipeline network.

Anyhow I agree that no one could have predicted which way the prices will swing but I am never in support of buying your entire supply from one country and with such strict penalty clauses.

 

[nahtanbob]

Sometimes it’s better not to correct the person making incomprehensible statements:......

like a patient of mine in Cleveland who asked me where I am from and I answered Pakistan... he then Asked me where is Pakistan and I joked next to Mexico.... hearing this he informed me that he thought so as I I look like a Mexican because of my brown skin....that’s when I inserted a needle in him and he slowly went to sleep with a sure fact in his head that Pakistan is next to Mexico.

For an average American does it matter where Pakistan is actually located ?

 

[BL33D]

Would be cheaper than continuing with the deal.

 

[khail007]

Massive kickbacks were taken by PPP and PMLN for these deals. But not a single conviction all thanks to our judiciary and weak prosecutors.

Sir G, this corrupt judiciary/prosecutors are not so weak, where their own interests are on stake, they exercise their full powers.
The cases mentioned in your post are may be of no interest to them as they do not seems to be benefited from them directly.

 

[War Thunder]

Kill the dealers too.. who put us in this condition.

they should be made to pay for it.

 

[Bouncer]

What kind of ch were doing such nonsense deals left right and center. Be it reko diq, electricity power ship or this lng.

Same kind of ch who are running the show now. Just different political party flag now. We'll hear about how awful these current deals are in next Gov's tenure.

 

[KhanBaba2]

I have a feeling the deal will be cancelled a couple of weeks before prices of oil go up again.

I have a feeling the deal will be cancelled a couple of weeks before prices of oil go up again.

 

[ColonelSanders]

I am not in favour of handouts to companies for contract breaking fees

• If gas is expensive, use less conserve it
• No lump sum payment of 300 Million Dollar at once and no gas delivered

Lunatic idea , lets not get gas for 300 million, but lets give 300 Million Dollar in Charity


Option A:
Government gets gas from the company for $300 Million

Sells to internal Distributor
The distributor sells it to Factories
The distributor sells it to Consumers

• Distributor Pays Taxes to Government
• Distributor Pays the cost of Gas to government

Government recovers their money $300 Million Profit
Customers get gas
Factory gets gas

> Factory makes more products sells it and makes more money , earn Pakistan $100 million in profit from Textile sector


Option B:
Government just gifts $300 million dollars to the company gets nothing return

Government starts a new tender , the Judge Vultures come in lawyer vultures get into mix
and it is politicized

Distributor can't supply gas to people, and circular debt builds up

• Gas Shortages in Factory
• Gas Shortages in Homes

During this time Textile industry goes Thup

Takes 2-3 years to negotiate a new deal

Government then goes to IMF to ask for loan of 700 million to import gas

By the time gas comes 5 years have passed and now the price of gas is more expensive


Sounds familiar?

Sick analysis mate. You should be given an award

 

[badsha001]

It's a bluff to get more favorable rate from Qatar but the way Imran Khan is going, I wouldn't be surprised if he does that...

 

[El Sidd]

there's no money.

sorry