Rs 200 Billion corruption Scandal=LNG

[Patriot forever]

Which idle terminal capacity?? Pakistan need at-least two new terminals, if Pakistan has idle terminal capacity why it is negotiating for new terminals??

NAB has investigated contracts thoroughly and decided not to make a reference against these contracts.

Govt decides to utilise idle capacity of PGPC’s LNG terminal

ISLAMABAD: In an apparent bid to avoid looming gas crisis in the upcoming winter season, the government has decided to allocate the unutilised capacity of a liquefied natural gas (LNG) terminal to pri

profit.pakistantoday.com.pk

Private sector to start LNG import from Nov | The Express Tribune

Govt opens market for private sector to reduce financial risks

tribune.com.pk

LNG consumers likely to bear extra $40m cost | The Express Tribune

Idle capacity at second LNG terminal estimated at 53% for 2019

tribune.com.pk

"
As full capacity remains unutilised at the second liquefied natural gas (LNG) terminal at Port Qasim due to bureaucratic hurdles, consumers are likely to bear the cost of idle capacity amounting to $40 million in 2019.

Already, the consumers have paid $45 million for the unutilised capacity at the second terminal in 2018. Private-sector stakeholders were interested in utilising the idle capacity, which would have resulted in a lower tariff cost, but bureaucratic snags prevented them due to a lack of regulatory framework".

 

[muhammadhafeezmalik]

Govt decides to utilise idle capacity of PGPC’s LNG terminal

ISLAMABAD: In an apparent bid to avoid looming gas crisis in the upcoming winter season, the government has decided to allocate the unutilised capacity of a liquefied natural gas (LNG) terminal to pri

profit.pakistantoday.com.pk

Private sector to start LNG import from Nov | The Express Tribune

Govt opens market for private sector to reduce financial risks

tribune.com.pk

LNG consumers likely to bear extra $40m cost | The Express Tribune

Idle capacity at second LNG terminal estimated at 53% for 2019

tribune.com.pk

There was idle capacity in 2019 because Pakistan decided to run FO & diesel power plants instead on LNG and sent back the cargoes for LNG.

 

[Norwegian]

Who was to make an purchase requisition?? SNGPl and SSGPL, both are ferderal government entities, who to blame??

There was idle capacity in 2019 because Pakistan decided to run FO & diesel power plants instead on LNG and sent back the cargoes for LNG.

only Pmln govt can take the best decisions

 

[Patriot forever]

There was idle capacity in 2019 because Pakistan decided to run FO & diesel power plants instead on LNG and sent back the cargoes for LNG.

And what about 45 million paid in FY2018?
Don't be childish bro.

 

[The Accountant]

Who was to make an purchase requisition?? SNGPl and SSGPL, both are ferderal government entities, who to blame??

Persons who were governing those entities from 5 decades

 

[El Sidd]

No it isn't

It is. Security of it is a contract Pakistan eyes for.

Qatar is not a friendly country just because Sharif family mafia wealth is stashed in there

Nobody is interested in your Modi plans for Isolation.

 

[Norwegian]

It is. Security of it is a contract Pakistan eyes for.

Nobody is interested in your Modi plans for Isolation.

Arab countries isolated themselves by siding with India and Israel

 

[El Sidd]

Arab countries isolated themselves by siding with India and Israel

Are you done trying to masquerade as a right wing patriot?

 

[Norwegian]

Are you done trying to masquerade as a right wing patriot?

Yepp

 

[farok84]

There were 14 contracts in first half of 2019 but in 2020 there were 24 contracts signed in first half of 2020. Some of the buyers renegotiated their tenders and increased volumes and contact period even one deal was done on fix price and six others were not connected to Brent, so LNG suppliers were ready to innovative in contract pricing benchmarks.

View attachment 693901

LNG contract volumes see sharp rise

Covid disruptions prove no barrier to major year-on-year jump in H1 2020

www.petroleum-economist.com

When prices were as low as >6 percent to 8 percent of Brent crude oil prices becuase of COVID, Pakistan could have easily clinch a deal of a long term contract for under 9 percent of Brent crude oil prices.

Hi,

Thanks for the reply.

The article you shared, mentions price of 10.6% (16 out of 24 contracts are still priced on oil-linked slope) and argues that Covid has less to no bearing on contracts signed, so the insinuation that PTI government could have struck a deal for less than 9% 'easily' is contrary to global markets flow. Also a requirement for another term deal don't stand much ground unless a) an existing deal is cancelled (which in all likelihood won't and shouldn't happen) b) Pakistan increases its storage capacity for LNG/ RLNG or both (again the likeness of such are slim), c) after expiration of Gunvor contract in 2022.

"According to Poten & Partner’s latest contract price analysis tools, the average oil-linked slope has been falling steadily since 2014, when a typical deal was priced at 13.4pc of Brent crude. The average Brent slope for contracts signed in H1 2020 was 10.6pc, down slightly from a typical 11pc at the end of 2019."

"The benchmarks used to price LNG has seen little innovation this year. Oil benchmarks still dominate—16 of 24 contracts for 17mn t/yr were priced against crude, almost all of them linked to Brent."



Unfortunately shared article doesn't offer much insight on individual contracts specially pricing, even pricing of that one fixed price contract isn't mention, but then the focus of author was volumes, so a much detailed read and informed comment can't be made.

 

[fallstuff]

LNG is cheaper then diesel, at least that is how it is around here.