Pakistan, Qatar to sign LNG supply treaty in Doha today

[Muhammad Omar]

ISLAMABAD: Pakistan and Qatar will ink a historic agreement today (Wednesday) in Doha for the provision of liquid natural gas (LNG) for meeting the requirements of Pakistan in the presence of Prime Minister Nawaz Sharif and the Emir of State of Qatar Sheikh Tamim bin Hamad Al-Thani.

The prime minister is embarking upon a two-day official visit of the State of Qatar today early in the morning. The visit will have an added significance as the two leaders will also witness a demonstration of Pakistan-China’s co-production JF-17 Thunder multi role fighter aircraft and Mashshak plane in Qatar’s air. Chief of the Air Staff (CAS) Air Chief Marshal Sohail Aman will also be a part of the entourage of the prime minister.

Highly placed sources told The News that the visit of the prime minister to Qatar would usher in new era of multi-dimensional cooperation with the Gulf States. The first lady Begum Kulsum Nawaz Sharif, federal ministers Senator Muhammad Ishaq Dar, Shahid Khaqan Abbasi and Special Assistant to Prime Minister (SAPM) for Foreign Affairs Syed Tariq Fatemi will be accompanying the prime minister.

Two JF-17 Thunder aircraft and two Mashshak light aircraft have reached Doha, which will take part in the demonstrations. The air chief will explain about the two types of aircraft being produced by Pakistan. Qatar was among the first countries that showed an interest in purchasing the JF-17 Thunder aircraft.

Prime Minister Nawaz Sharif and Emir of Qatar Sheikh Tamim will also discuss regional and global issues in the talks. The Middle East situation, developments with regard to Afghanistan and Pakistan’s ties with India will prominently figure in the talks, the sources pointed out. The two brotherly countries will also discuss enhancing their bilateral relations including trade.

Qatar is offering the cheapest tariff of LNG to Pakistan, which would help Pakistan to overcome its energy scarcity. The two countries had lengthy talks on the price and relevant arrangements for the supply of LNG and Federal Minister Shahid Khaqan Abbasi spearheaded the talks on the behalf of Pakistan and ultimately succeeded in a deal that will suit Pakistan’s interests.

 

[shah1398]

Qatar is offering the cheapest tariff of LNG to Pakistan

How much cheaper than the other regional offers?

 

[Muhammad Omar]

How much cheaper than the other regional offers?

Govt to seal Qatari LNG deal at $5 per mmbtu

 

[Pandora]

Govt to seal Qatari LNG deal at $5 per mmbtu

But that is just price of Gas. It doesn't include transportation costs. Pakistan will be paying Engro 272000$ every day for next 15 years for the import of LNG from Qatar.

 

[Muhammad Omar]

But that is just price of Gas. It doesn't include transportation costs. Pakistan will be paying Engro 272000$ every day for next 15 years for the import of LNG from Qatar.

per day???

 

[Pandora]

per day???

Yup per day. I was watching Dr shahid Masood he gave the figure.

It is for reliquidation plant at the port and also for transport for LNG. So real figure will be much higher. Acording to Dr shahid masood it will become a big scandal soon.

 

[Muhammad Omar]

Yup per day. I was watching Dr shahid Masood he gave the figure.

It is for reliquidation plant at the port and also for transport for LNG. So real figure will be much higher. Acording to Dr shahid masood it will become a big scandal soon.

I Don't Believe Shahid Masood....

 

[Pandora]

I Don't Believe Shahid Masood....

Yes i know but government has been hidding stats about this deal for a long time now. He is right about one thing that traporation costs are not included and also government will be paying engro for the terminal they built but i am skeptical about figure of 272000$ as well. So lets see what comes out of the deal.

 

[Bashido]

Yup per day. I was watching Dr shahid Masood he gave the figure.

It is for reliquidation plant at the port and also for transport for LNG. So real figure will be much higher. Acording to Dr shahid masood it will become a big scandal soon.

This is level of Pakistani nation who have believe on Dr. Shahid Masood. i think for Shahid Masood it is better he runs a competition between Dajjal and Paak army ... who will come first in Pakistan

 

[RoadRunner401]

But that is just price of Gas. It doesn't include transportation costs. Pakistan will be paying Engro 272000$ every day for next 15 years for the import of LNG from Qatar.

Opinion is like a A-hole every body has one, in Pakistan are blessed with way too many, clueless, retarded experts. (Shahid Masood Khan, widely known as Dr. Shahid Masood is a Pakistani mental doctor political writer, television host, journalist, and political analyst) Jack of all trades Master on none.

Please, tell me how is this guy qualified to have an opinion on this subject. This is a buisness deal off course, we will incur cost that's a given, but is it making us money and at the end of the day.

This gas import will help the resource-constrained Pakistan save more than a billion dollars/year in cost-to-energy terms.

First-ever liquefied natural gas (LNG) floating terminal has so far imported around one million tons of gas in 17 voyages and utilised 88 percent of the Engro Elengy Terminal Pakistan Limited’s (ETPL) handling and re-gasification facility, the company’s official said on Wednesday.

Chief executive officer Syed Mohammad Ali at ETPL, talking to a select group of journalists, said the government was supposed to import around 1.5 million tons of LNG for the first year as per the contractual obligation.

“ETPL made a world record by building a $135-million state-of-the-art LNG terminal in just 318 days at the Port Qasim, that too with 100 percent private investment,” Ali said. Independent power producers and fertiliser, textile and compressed natural gas sectors have used the LNG imported during the first nine months, or by the end of December 2015.


Ali said the country needs another three to four LNG import terminals to bridge the gap in demand and supply of natural gas.

Talking about cost of imported LNG, he also said the LNG import cost is expected to remain below 14 percent of Brent's three-month average price in slop form.

He claimed that the capacity and utilisation charges at Elengy Terminal stand at $0.66/million metric British thermal unit (MMBtu), which is lowest in the world compared to other regional terminals, such as Arun LNG Terminal of Indonesia, which charges importers $2.5/MMBtu, Kochi Terminal of India $1, Adriatic and LNG Toscana terminals of Italy $1.47 and $1.2, Klaipedos Nafta Terminal of Lithuania $0.88 and those in China, Korea and Japan charge $0.8 to $1/MMBtu.

"The numbers, widely quoted of $272,000/day charges to LNG terminal by government, is misleading,” Ali said.

“This is just the first year rate and daily levelised capacity charge for the whole 15 years stood at $219,589/day.”

These charges include all the costs, such as floating storage and regasification unit lease rate, taxes, royalties, manpower, insurance, operations and utilities, maintenance and capital expenditure of $135 million the terminal has spent. All of these are recoverable under the terminal's re-gasification.

$219,589/ day minus expenses will be taxed plus its supply to industry will create 1000s of jobs, how, is that bad for Pakistan.

 

[Pandora]

bhae ap apna liquidation ka plant

aur apna plant laga k free mai gas ko process kar daina .... it is easy and simple ....

?

T

Opinion is like a A-hole every body has one, in Pakistan are blessed with way too many, clueless, retarded experts. (Shahid Masood Khan, widely known as Dr. Shahid Masood is a Pakistani mental doctor political writer, television host, journalist, and political analyst) Jack of all trades Master on none.

Please, tell me how is this guy qualified to have an opinion on this subject. This is a buisness deal off course, we will incur cost that's a given, but is it making us money and at the end of the day.

This gas import will help the resource-constrained Pakistan save more than a billion dollars/year in cost-to-energy terms.

First-ever liquefied natural gas (LNG) floating terminal has so far imported around one million tons of gas in 17 voyages and utilised 88 percent of the Engro Elengy Terminal Pakistan Limited’s (ETPL) handling and re-gasification facility, the company’s official said on Wednesday.

Chief executive officer Syed Mohammad Ali at ETPL, talking to a select group of journalists, said the government was supposed to import around 1.5 million tons of LNG for the first year as per the contractual obligation.

“ETPL made a world record by building a $135-million state-of-the-art LNG terminal in just 318 days at the Port Qasim, that too with 100 percent private investment,” Ali said. Independent power producers and fertiliser, textile and compressed natural gas sectors have used the LNG imported during the first nine months, or by the end of December 2015.


Ali said the country needs another three to four LNG import terminals to bridge the gap in demand and supply of natural gas.

Talking about cost of imported LNG, he also said the LNG import cost is expected to remain below 14 percent of Brent's three-month average price in slop form.

He claimed that the capacity and utilisation charges at Elengy Terminal stand at $0.66/million metric British thermal unit (MMBtu), which is lowest in the world compared to other regional terminals, such as Arun LNG Terminal of Indonesia, which charges importers $2.5/MMBtu, Kochi Terminal of India $1, Adriatic and LNG Toscana terminals of Italy $1.47 and $1.2, Klaipedos Nafta Terminal of Lithuania $0.88 and those in China, Korea and Japan charge $0.8 to $1/MMBtu.

"The numbers, widely quoted of $272,000/day charges to LNG terminal by government, is misleading,” Ali said.

“This is just the first year rate and daily levelised capacity charge for the whole 15 years stood at $219,589/day.”

These charges include all the costs, such as floating storage and regasification unit lease rate, taxes, royalties, manpower, insurance, operations and utilities, maintenance and capital expenditure of $135 million the terminal has spent. All of these are recoverable under the terminal's re-gasification.

$219,589/ day minus expenses will be taxed plus its supply to industry will create 1000s of jobs, how, is that bad for Pakistan.

Thanks for explaining i was confused about how it works.

 

[Pandora]

This is level of Pakistani nation who have believe on Dr. Shahid Masood. i think for Shahid Masood it is better he runs a competition between Dajjal and Paak army ... who will come first in Pakistan

He was quoting some statistics which are being told by government in the first place. If you had bothered to read comments in the thread then you could have seen that figure is not correct but daily amount to be paid as part of negotiated deal is $219k per day. It is not a matter of believing Dr. Shahid but rather than questioning if those stats are true which i already said in the thread so please don't waste my time with you intellectual Pakistani bullshit.
If you know history of your country then you would know how transparent such deals have been in the past so raising doubt is very much logical. Not every one has blind faith in politicians like you.

 

[shah1398]

But that is just price of Gas. It doesn't include transportation costs. Pakistan will be paying Engro 272000$ every day for next 15 years for the import of LNG from Qatar.

Its kinda very hard to digest. No doubt there would for sure be some profiteering and corruption in this deal but so much money per day is just like . Nonetheless even if true then Engro is still a good option than any foreign company/group as it is supposed any money given to Engro would be reinvested inside Pakistan.