Pakistan strikes key deal with Russia to buy Gas and Wheat

[Asian.Century]

Yes

Do not think so. Pakistan should not play quiet. It means we are like manipulative confused weak Indians whose Chankaya play both sides. Pakistan is confident, clear cut on its policy decisions which fulfills its interests. The GSP+ status will soon be taken back plus EU-NATO keeping Pakistan on FATF Grey List again. Pakistan needs its economy booming, financial businesses keep working.

Pakistan is looking at its interests, in order to feed our people, and fulfill country's dire needs rather than carried-away with Geo-politics which has no use.

 

[Leishangthem]

Do not think so. Pakistan should not play quiet. It means we are like manipulative confused weak Indians whose Chankaya play both sides. Pakistan is confident, clear cut on its policy decisions which fulfills its interests. The GSP+ status will soon be taken back plus EU-NATO keeping Pakistan on FATF Grey List again. Pakistan needs its economy booming, financial businesses keep working.

Pakistan is looking at its interests, in order to feed our people, and fulfill country's dire needs rather than carried-away with Geo-politics which has no use.

IK reminds me of figures like Hugo Chávez with the backbone to stand up to the pressure from west.
Nobody can say he's coward in media.

 

[Indos]

Does the Pakistani govt use gold or CNY to pay?

Energy sector is not totally shut, the high price that we are facing is more on the worry rather than supply disruption. Russian Energy Minister spoke Today that Russian still send the gas to Europe by pipe with normal capacity

 

[niaz]

It is quite normally for the Pakistan political leader to fool the public about oil & gas as Bhutto did about the Dhodak gas field and the PTI's news about Kekra exploration. I am however surprised at the naivety of Pakistani media and the oil industry personnel. Has no ever bothered to look at the map of the Russian gas fields?

Russia has probably the largest natural gas reserves in the world (1,680tcf ). However, majority of the Russian gas fields are located in Western Siberia. The largest being the Urengoy which had reserves of 286 tcf when originally discovered in 1966. Russia’s second largest gas field, the Yamburg, is located in the Arctic Circle and north of Urengoy. Its original reserves were estimated at 166 tcf. The only major gas field outside Siberia is Orenburg, with reserves of 64 tcf located in the Volga-Urals region.

Russia does not export natural gas as LNG but through the pipeline. Nearest gas field of Orenberg is more than 2000 miles way as the crow flies. Would anyone please look at the map of Russia and advise me how the Russian natural gas can be exported to Pakistan? The idea is not merely uneconomic but absurd. Russia can and probably will, help in the constructing the gas pipeline from Karachi to north of the country. That’s about all.

Wheat is a different matter altogether. Even though to the best of my knowledge most of the previous wheat imported by Pakistan originated from Australia, Canada and Ukraine. Undoubtedly Russia is a major wheat exporter. Understand Pakistan has signed a deal to import 2-million tons of wheat from Russia. But with the banking sanctions against Russia, how will Pakistan pay for it if even if some how wheat can be shipped through the Black in the midst of war?

 

[Sinnerman108]

this moron should shut up for once
We get GSP+ status in EU, helping our exports immensely
too much trash talk and you get a kick in the backside

 

[lastofthepatriots]

It is quite normally for the Pakistan political leader to fool the public about oil & gas as Bhutto did about the Dhodak gas field and the PTI's news about Kekra exploration. I am however surprised at the naivety of Pakistani media and the oil industry personnel. Has no ever bothered to look at the map of the Russian gas fields?

Russia has probably the largest natural gas reserves in the world (1,680tcf ). However, majority of the Russian gas fields are located in Western Siberia. The largest being the Urengoy which had reserves of 286 tcf when originally discovered in 1966. Russia’s second largest gas field, the Yamburg, is located in the Arctic Circle and north of Urengoy. Its original reserves were estimated at 166 tcf. The only major gas field outside Siberia is Orenburg, with reserves of 64 tcf located in the Volga-Urals region.

Russia does not export natural gas as LNG but through the pipeline. Nearest gas field of Orenberg is more than 2000 miles way as the crow flies. Would anyone please look at the map of Russia and advise me how the Russian natural gas can be exported to Pakistan? The idea is not merely uneconomic but absurd. Russia can and probably will, help in the constructing the gas pipeline from Karachi to north of the country. That’s about all.

Wheat is a different matter altogether. Even though to the best of my knowledge most of the previous wheat imported by Pakistan originated from Australia, Canada and Ukraine. Undoubtedly Russia is a major wheat exporter. Understand Pakistan has signed a deal to import 2-million tons of wheat from Russia. But with the banking sanctions against Russia, how will Pakistan pay for it if even if some how wheat can be shipped through the Black in the midst of war?

 

[niaz]

Honourable Sir,

The cylinder contains LPG which is liquified petroleum gas.. The news is not about LPG (Propane & Butane) but about natural gas which is mostly Methane. Why go to Russia for LPG when it can be easily purchased from Iran in cylinders and done by individuals in small quantities as total deficit is only about half a million tons per annum.

2021 international wheat prices were about $190/- per metric ton. Don't think Pakistan has the banking arrangements/facilities to buy about $400-million in Bitcoins to pay Russia and are you sure that Russia would accept payment in Bitcoins?

 

[lastofthepatriots]

Honourable Sir,

The cylinder contains LPG which is liquified petroleum gas.. The news is not about LPG (Propane & Butane) but about natural gas which is mostly Methane. Why go to Russia for LPG when it can be easily purchased from Iran in cylinders and done by individuals in small quantities as total deficit is only about half a million tons per annum.

2021 international wheat prices were about $190/- per metric ton. Don't think Pakistan has the banking arrangements/facilities to buy about $400-million in Bitcoins to pay Russia and are you sure that Russia would accept payment in Bitcoins?

Ustad ji, meh mazaak kar ra tha. I agreed with everything you wrote. I was just joking to drive the point across.

 

[_NOBODY_]

It is quite normally for the Pakistan political leader to fool the public about oil & gas as Bhutto did about the Dhodak gas field and the PTI's news about Kekra exploration. I am however surprised at the naivety of Pakistani media and the oil industry personnel. Has no ever bothered to look at the map of the Russian gas fields?

Russia has probably the largest natural gas reserves in the world (1,680tcf ). However, majority of the Russian gas fields are located in Western Siberia. The largest being the Urengoy which had reserves of 286 tcf when originally discovered in 1966. Russia’s second largest gas field, the Yamburg, is located in the Arctic Circle and north of Urengoy. Its original reserves were estimated at 166 tcf. The only major gas field outside Siberia is Orenburg, with reserves of 64 tcf located in the Volga-Urals region.

Russia does not export natural gas as LNG but through the pipeline. Nearest gas field of Orenberg is more than 2000 miles way as the crow flies. Would anyone please look at the map of Russia and advise me how the Russian natural gas can be exported to Pakistan? The idea is not merely uneconomic but absurd. Russia can and probably will, help in the constructing the gas pipeline from Karachi to north of the country. That’s about all.

Wheat is a different matter altogether. Even though to the best of my knowledge most of the previous wheat imported by Pakistan originated from Australia, Canada and Ukraine. Undoubtedly Russia is a major wheat exporter. Understand Pakistan has signed a deal to import 2-million tons of wheat from Russia. But with the banking sanctions against Russia, how will Pakistan pay for it if even if some how wheat can be shipped through the Black in the midst of war?

@farok84

 

[farok84]

@farok84

Hi,

Thanks for the tag.

Russia exports tonnes of Lng. They can provide us through their Yamal Lng project.

http://yamallng.ru/en/

LNG export value from Russia 2021 | Statista

The value of liquefied natural gas (LNG) exports from Russia reached approximately 7.3 billion U.S.

www.statista.com

The question is not whether Russia can provide Lng, but at what price? We can't afford spot buys, even at 50% discount. Dutch TTF traded above $100/mmbtu today, so we should be looking for 5 or 10 years term contract. Any long term contract price, whether through pipeline (TAPI, IP, or Russia-Kazakhstan-Uzbekistan/Turkmenistan-Afghanistan-Pakistan) or seaborne (Lng) has to be lower or match our 2021 Qatar Lng contract (that is 10.2% of three months averaged Brent), which will be extremely hard in case of Lng supplies for Russia.

Unfortunately, no information regarding supposed gas sales have been made public so we can only make guesses.

For pipeline gas, Russia can make couple of plays, a separate pipeline from 1) Uzbekistan (Pipeline No. 4, Fig 2) to Pakistan via Afghanistan, but in my opinion they would simply piggyback on 2) TAPI, that is, tie in the existing CAC Pipeline (Pipeline No. 2, Fig 2) in Turkmenistan to TAPI starting point, buy extra capacity in TAPI and provide Pakistan 750-1000 mmcfd (keeping it under Gazprom's sanction limit and financially less burdening on Russia). There's is a reason why Mr. Zamir Kabulov finds Tapi pipeline idea interesting.

https://tass.com/economy/1395497

But all this will come into fruition only after TAPI is constructed. So, at least 3 years from the start of construction, the contract term will be much longer 20-25 years (specially if they decide for standalone Uzbekistan route).

So, if a contract (a strategic energy partnership) was indeed signed, it would be multi pronged.

1. Work on pipeline construction through Uzbekistan Route or Turkmenistan route. (Physical gas supply starting after 3-5 years)
2. In meanwhile, supply LNG (1.5mtpa or 2 cargoes/ month) through short term contract (for 3-5 years term) starting October/ November 2022.

Hope, this makes some sense.

 

[Hulk]

IK reminds me of figures like Hugo Chávez with the backbone to stand up to the pressure from west.
Nobody can say he's coward in media.

Well, I do not know if you understand things or living in alternate world, he is biggest disaster for Pakistan. He has spoiled Pakistan relations with almost everyone. Even countries like Saudi which was always there for Pakistan to help. It takes a special talent to spoil existing relationship. That talent is not coward but maybe someone which start with letter "I".

 

[niaz]

Qatar LNG capacity will increase to 126 -million tons per year by 2027 from the current 78-miilion tons per year.

Australia already exported about 80-million LNG in 2021 and the projects are on the way to increase it to 89-milion ton per annum.

Russian Yamal LNG plant capacity is about 16.5-milion toms per annum.

I maintain that it is absurd for Pakistan to buy gas from Russia. TAPI pipeline is and was sponsored by the USA for India to pull out of the IPI pipeline deal. Economically it is not feasible to supply LNG to Pakistan to match delivered LNG price either from Qatar or from Australia. I let the readers decide what is the likely scenario.

 

[Last starfighter]

And that's why dear readers , He's got to go.

Make way for Pakistan's first transgender.

 

[CrazyZ]

GSP+

Vietnam and Bangladesh abstained in the UN vote against Russia. Will it affect affect their GSP status with the EU?

Pakistan should maintain its neutrality. Western countries control the economic high ground today. Asia, MENA and Africa are the markets of the next century. Pakistan can act as a trade conduit for Russia's hard assets to these markets.....Especially with the Black Sea a war zone right now.

 

[Patriot forever]

Hi,

Thanks for the tag.

Russia exports tonnes of Lng. They can provide us through their Yamal Lng project.

http://yamallng.ru/en/

LNG export value from Russia 2021 | Statista

The value of liquefied natural gas (LNG) exports from Russia reached approximately 7.3 billion U.S.

www.statista.com

The question is not whether Russia can provide Lng, but at what price? We can't afford spot buys, even at 50% discount. Dutch TTF traded above $100/mmbtu today, so we should be looking for 5 or 10 years term contract. Any long term contract price, whether through pipeline (TAPI, IP, or Russia-Kazakhstan-Uzbekistan/Turkmenistan-Afghanistan-Pakistan) or seaborne (Lng) has to be lower or match our 2021 Qatar Lng contract (that is 10.2% of three months averaged Brent), which will be extremely hard in case of Lng supplies for Russia.

Unfortunately, no information regarding supposed gas sales have been made public so we can only make guesses.

For pipeline gas, Russia can make couple of plays, a separate pipeline from 1) Uzbekistan (Pipeline No. 4, Fig 2) to Pakistan via Afghanistan, but in my opinion they would simply piggyback on 2) TAPI, that is, tie in the existing CAC Pipeline (Pipeline No. 2, Fig 2) in Turkmenistan to TAPI starting point, buy extra capacity in TAPI and provide Pakistan 750-1000 mmcfd (keeping it under Gazprom's sanction limit and financially less burdening on Russia). There's is a reason why Mr. Zamir Kabulov finds Tapi pipeline idea interesting.

https://tass.com/economy/1395497

But all this will come into fruition only after TAPI is constructed. So, at least 3 years from the start of construction, the contract term will be much longer 20-25 years (specially if they decide for standalone Uzbekistan route).

So, if a contract (a strategic energy partnership) was indeed signed, it would be multi pronged.

1. Work on pipeline construction through Uzbekistan Route or Turkmenistan route. (Physical gas supply starting after 3-5 years)
2. In meanwhile, supply LNG (1.5mtpa or 2 cargoes/ month) through short term contract (for 3-5 years term) starting October/ November 2022.

Hope, this makes some sense.



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View attachment 821738

I read somewhere Europe prefers market rates instead of long term contracts from Russia (more of a criticism to their policy). Is that true?

Pakistan is definitely looking for long term fixed contract. The estimate I came across was $6.5 per mmbtu and was said to be cheaper than Qatar long term. ( Markets have changed now I am sure we won't rush to finalise a contract in the current market).