Finally schematics of $15.3 bn LNG deal with Qatar approved by Economic Coordination Committee. 13.39% of 3 months average of Brent Crude Oil is quite favorable deal for Pakistan …
Additionally reduces Punjab and Sindh wheat export quotas by half. PHOTO: AFP
ISLAMABAD: The government on Wednesday approved in principle the $15-billion Liquefied Natural Gas (LNG) import deal after Qatar agreed to cut its sale price to 13.39% of Brent, which would result into an annual saving of $42 million at current crude oil prices.
“The Economic Coordination Committee (ECC) of the Cabinet authorised Pakistan State Oil (PSO) to sign the Sale Purchase Agreement (SPA) with Qatar subject to approval of commercial aspects by the PSO Board,” Petroleum and Natural Resources Minister Shahid Khaqan Abbasi told The Express Tribune.
Headed by Finance Minister Ishaq Dar, the ECC approved signing of the LNG SPA with Qatar Gas Operating Company-2 and authorised PSO to execute the agreement under government to government arrangement after completing the due process, according to a Finance Ministry handout.
The official documents showed that the deal has been authorised for 15 years, starting from 2016 to 2031. The price can be renegotiated after ten years. The petroleum minister did not disclose the sale price, saying this would be announced when the SPA is signed with Qatar.
A top government functionary told The Express Tribune that the ECC approved the price committee recommendation.
The committee had recommended the price at 13.39% of the Brent slope, which was lower than the 13.90% price which Qatar had earlier offered. Overall, at the existing rates, the 15-year deal cost would come down to $15.3 billion from the earlier estimated price of $16 billion.
Last week, a report had quoted the petroleum minister as saying that at 13.39% of Brent price, the delivered LNG price at Port Qasim would be $5.50 per million british thermal units (mmbtu).
According to the proposed SPA, in the first year Qatar will supply a minimum 1.5 million tons per annum (mtpa) of LNG which can be increased up to 3 mpta at PSO’s request in the first two years.
From January 2018 until December 2031, the volume will be 3 mpta and Pakistan will have to buy the entire quantity or pay the full price.
The documents showed that the SPA agreement can be terminated due to either party’s insolvency, and due to material breach of the agreement. In case PSO fails to pay the due amount or fails to replenish the Standby Letter of Credit or the bank issuing the letter falls below the required credit rating, the Qatar government can cancel the deal.
In case of dispute, the English law will be applicable. Three arbitrators in accordance with UNCITRAL Rules of Arbitration in London, UK, will finally settle any dispute that is not technical. If the parties fail to appoint the arbitrators, the Court of Arbitration of the International Chamber will appoint the arbitrators.
ISLAMABAD: Energy giant Royal Dutch Shell is going to lose a five-year liquefied natural gas (LNG) supply contract worth over $1 billion as a Qatari company has agreed to provide the commodity at a lower price to Pakistan.
Gunvor and Royal Dutch Shell had won supply contracts in response to the two tenders floated by Pakistan State Oil (PSO) a few weeks ago for bringing 120 LNG cargoes over a period of five years.
Gunvor offered to bring 60 cargoes at 13.37% of Brent crude price whereas Shell quoted 13.8% of Brent crude price for another 60 cargoes.
During negotiations after the opening of bids, Qatargas agreed to match the price offered by Gunvor, which was the lowest, prompting the government to consider scrapping the contract with Shell and award it to the Qatari company.
This was disclosed in a meeting of the Economic Coordination Committee (ECC) on Wednesday this week, which approved a long-term LNG supply agreement worth $15 billion.
The ECC was told that the government would save a substantial amount by transferring the contract won by Shell to Qatar at a lower price. However, Gunvor’s contract will remain intact.
In the tenders, nine trading firms including commodities giant Vitol, Glencore, Trafigura, Marubeni and US-based Excelerate Energy had submitted bids but all were rejected.
Owing to the plunge in crude oil prices, Shell is focusing on LNG business in the world market. During the previous Pakistan Peoples Party government too, Shell had tried to strike an LNG deal with Pakistan, but failed due to a controversy over the Mashal LNG project, which landed in the Supreme Court.
Pakistan produces 4 billion cubic feet of natural gas per day (bcfd) against demand for over 6 bcfd. The government considers LNG as a fast-track source to bridge the growing energy shortfall.
The lower price offer on the part of Qatar came after Petroleum and Natural Resources Minister Shahid Khaqan Abbasi visited Doha on January 6 and sought a reduction in the LNG rate. Qatar agreed to match the price offered by Gunvor for the short-term supply contract spread over five years.
Earlier, Pakistan and Qatar had finalised a long-term supply deal at 13.9% of Brent crude price. The two sides are going to sign a commercial agreement as the ECC has given the go-ahead. Reports suggested that India had struck an LNG deal with Qatar at the lowest price, but Petroleum Minister Abbasi insisted the Indian price was 20% higher compared to the rate agreed between Islamabad and Doha.
Under the proposed arrangement, the long-term LNG supply contract will be for 15 years, but it will be renegotiated after 10 years. The two sides can end the contract if they fail to develop consensus over the price.
Every three months past price of LNG would be taken to calculate the price with Qatar.
As part of the agreement, PSO will receive 1.5 million tons of LNG from Qatargas in the first year and the annual volume will be enhanced to 3 million tons from the second year.
*
Published in The Express Tribune, January 15[SUP]th[/SUP], 2016.*
Desert Bird: It is really funny that Pakistan would get LNG from Qatar, coming out of PARAS Gas field at $5.5 per mmbtu. In other words, gas would come out of 'PARAS' gas field, then liquefied, then put in containers, than sold to Pakistan at $5.5 per mmbtu, that get transported on ships to Pakistani ports. Prices of gas in world market has come down and if Pakistan could have decided they might have negotiated same amount of gas from same gas fields (PARAS) directly coming through gas pipes from Iran (no liquefaction cost and no transport cost) and I believe if properly negotiated than in this depressed market, Pakistan could have got that same amount of gas, at probably less than $3 per mmbtu. Actual energy value would have been same but lots of saving. What you think ... and specially, the agreement becomes questionable when sanctions on Iran got lifted (I read that today, sanctions got lifted).
Actually (just to make USA and KSA happy), Pakistan did not imported Gas from Iran and whole nation (Pakistanis) suffered. Corrupt rulers kept giving excuses mentioning sanctions. But then, China, India, Turkey and many countries kept importing oil, gas and other goods from Iran, to fulfil their needs ... but corrupt government of Pakistan cared little for average Pakistanis ... resulting in miserable life for Pakistanis, as if sanction on Iran was not creating as much hardship for Iran than for Pakistan, or in other words, Pakistan was going through sanction just to make USA and KSA happy ... and in the end, they (USA and KSA) also did not cared nor tried to reduce Pakistani suffering due to self-imposed sanction to please masters.
Desert Bird: It is really funny that Pakistan would get LNG from Qatar, coming out of PARAS Gas field at $5.5 per mmbtu. In other words, gas would come out of 'PARAS' gas field, then liquefied, then put in containers, than sold to Pakistan at $5.5 per mmbtu, that get transported on ships to Pakistani ports. Prices of gas in world market has come down and if Pakistan could have decided they might have negotiated same amount of gas from same gas fields (PARAS) directly coming through gas pipes from Iran (no liquefaction cost and no transport cost) and I believe if properly negotiated than in this depressed market, Pakistan could have got that same amount of gas, at probably less than $3 per mmbtu. Actual energy value would have been same but lots of saving. What you think ... and specially, the agreement becomes questionable when sanctions on Iran got lifted (I read that today, sanctions got lifted).
Actually (just to make USA and KSA happy), Pakistan did not imported Gas from Iran and whole nation (Pakistanis) suffered. Corrupt rulers kept giving excuses mentioning sanctions. But then, China, India, Turkey and many countries kept importing oil, gas and other goods from Iran, to fulfil their needs ... but corrupt government of Pakistan cared little for average Pakistanis ... resulting in miserable life for Pakistanis, as if sanction on Iran was not creating as much hardship for Iran than for Pakistan, or in other words, Pakistan was going through sanction just to make USA and KSA happy ... and in the end, they (USA and KSA) also did not cared nor tried to reduce Pakistani suffering due to self-imposed sanction to please masters.
Baluchistan & Sindh deserves the same price of their gas which they export to Punjab
Desert Bird: It is really funny that Pakistan would get LNG from Qatar, coming out of PARAS Gas field at $5.5 per mmbtu. In other words, gas would come out of 'PARAS' gas field, then liquefied, then put in containers, than sold to Pakistan at $5.5 per mmbtu, that get transported on ships to Pakistani ports. Prices of gas in world market has come down and if Pakistan could have decided they might have negotiated same amount of gas from same gas fields (PARAS) directly coming through gas pipes from Iran (no liquefaction cost and no transport cost) and I believe if properly negotiated than in this depressed market, Pakistan could have got that same amount of gas, at probably less than $3 per mmbtu. Actual energy value would have been same but lots of saving. What you think ... and specially, the agreement becomes questionable when sanctions on Iran got lifted (I read that today, sanctions got lifted).
Actually (just to make USA and KSA happy), Pakistan did not imported Gas from Iran and whole nation (Pakistanis) suffered. Corrupt rulers kept giving excuses mentioning sanctions. But then, China, India, Turkey and many countries kept importing oil, gas and other goods from Iran, to fulfil their needs ... but corrupt government of Pakistan cared little for average Pakistanis ... resulting in miserable life for Pakistanis, as if sanction on Iran was not creating as much hardship for Iran than for Pakistan, or in other words, Pakistan was going through sanction just to make USA and KSA happy ... and in the end, they (USA and KSA) also did not cared nor tried to reduce Pakistani suffering due to self-imposed sanction to please masters.
Saleem Pai , your favourite Zardari just before the elections inaugurated IP Pipeline though he knew the sanctions would not allow any company/bank to finance this prroject and rate was approx. $11/mmbtu. Still IP Pipeline capacity is only 0.75 bcfd which can be extended to 1.0 bcfd in future but Pak demand supply gap in this winter reached almost 2.5 bcfd so no other solution except going for LNG route. Qatar is world biggest LNG producer,logistics cost is also minimum. TAPI needs min. 4 years to reach Pak provided turmoil in Afghanistan allow smooth transition of this project
We shall discuss when the details of this project come out, somehow this government wants to all their projects secretly.
Farcical representation of numbers is an art that Ishaq Dar has perfected, and Im pretty sure he is behind the above presentation of LNG prices as well.
The way it has been quoted in the article above, its made to sound as if the price has been locked....when in fact its the percentage that has been locked at 13.39%. The current contract is based on brent priced at $41. The minimum floor price for brent would be a bit over $37, which means that if brent goes below $37 (which it currently is), LNG would still be priced based on a brent price of $37. And when brent goes above $37, naturally the price will go up as well.
The supposed 'savings' of $42 million a year are all projected based on the current contract price of $41 a barrel...and is quoted based on the assumption that brent will not break $41 all year.
Maybe Dar and Abbasi know something we dont know.
And then theres the small matter of Saifur rehman being the counter party in the first contract....something that PMLN shamelessly denies to this day.
The government is going to sign a commercial agreement with Qatar during Prime Minister Nawaz Sharif’s visit to Doha on February 9-10. PHOTO: FILE
ISLAMABAD: The import of liquefied natural gas (LNG) appears to be a game-changer for Pakistan as government officials believe that they have finalised an LNG deal with Qatar at the lowest price.
They air the hope that this new fuel source will give a push to the national economy that has been afflicted by energy shortages.
The deal with Qatar looks better when compared with a contract signed by India with the energy-rich Gulf state.
Pakistan will buy LNG from Qatar at 13.37% of Brent crude price, which amounts to $4.680 per million British thermal units (mmbtu) when oil is sold for $35 per barrel. This also includes port charges of $320,000 per vessel.
On the other hand, India is buying LNG at 12.66% of Brent crude price plus $0.6 constant and $0.33 shipping cost. This is equal to $5.361 per mmbtu based on $35-per-barrel crude price.
Average regasification charges in Pakistan stand at $0.66 per mmbtu whereas in India these are $0.90 per unit.
Pakistan has planned to import 3.5 million tons per annum compared to Indian purchases at 8.5 million tons per year.
Pakistan and Qatar are all set to sign the $15 billion LNG deal in the next few days, which will be the first long-term agreement for the former that will place it on the world’s energy map.
**
Price revision**
The government has succeeded in persuading Qatar to revise the price downwards, compared to the initial pricing formula agreed between the two countries, leading to annual savings of $40 million.
During the previous government of Pakistan Peoples Party, Qatar was willing to offer LNG at 14.5% of Brent oil price. However, later Doha agreed to revise the price downwards to 13.9%.
In the meantime, Pakistan State Oil floated a short-term tender for LNG supply over five years, in which Gunvor won the contract at 13.37% of crude price, which was lower than the price the government had agreed with Qatar.
This provided an opportunity to the government to seek renegotiations with Doha, which agreed to match the price offered by Gunvor.
According to officials, the government is going to sign a commercial agreement with Qatar during Prime Minister Nawaz Sharif’s visit to Doha on February 9-10. Under the agreement, PSO will bring 1.5 million tons of LNG in the first year and receive 3.5 million tons from the second year.
Energy giant Royal Dutch Shell had also got the short-term contract at 13.8% of crude price. However, the government later scrapped the contract and decided to import the same volume at the lowest price of 13.37%.
**
Bridging shortfall**
Pakistan produces 4 billion cubic feet of natural gas per day (bcfd) against the demand for over 6 bcfd. The government considers
LNG as a fast-track solution to the energy shortages.
Under the proposed arrangement with Qatar, the long-term contract will be for 15 years, but it will be renegotiated after 10 years. The two sides can end the contract if they fail to develop consensus over the price.
Past governments had made five attempts and floated tenders to set up an LNG terminal and import the gas but failed. According to the officials, the country has suffered a loss of $3 billion due to delay in LNG imports as it has to rely on expensive furnace oil and diesel to run power plants.
Now, the country will be able to save $2.5 billion a year when LNG is consumed in power plants.
Owing to the poor energy mix, the major fuel source for power generation is oil, which results in piling up of circular debt. Since long, governments have pumped trillions of rupees into the energy sector to clear the debt and the present PML-N administration also cleared Rs480 billion worth of debt after coming to power in June 2013.
Still, the circular debt is haunting the energy sector and the national economy is losing three percentage points every year due to the power crisis.
However, the use of LNG in power plants will help to tackle the debt. The country will have a sustainable energy solution following a long-term deal with Qatar. It will help to eliminate or substantially reduce power outages, which are damaging the industrial sector and crippling the lives of ordinary citizens.
In the current winter season, gas is supplied to only 60% of domestic consumers in Punjab. In this area too, LNG will be the only solution and the government is planning to build two more terminals at Gwadar and in Karachi.
Published in The Express Tribune, February 8[SUP]th[/SUP], 2016.*
Nation may become one of world’s top five LNG importers
Liquefied natural gas prices have fallen 75% since 2014
A 75 percent drop in liquefied natural gas prices since 2014 is just what Pakistan needed. Prime Minister Nawaz Sharif’s government is confident it will help end the nation’s energy crisis by 2018.
In three years, the South Asian nation plans to import as much as 20 million tons of the super-chilled gas annually, according to Pakistan’s Petroleum Minister Shahid Khaqan Abbasi. That’s enough to feed about 66 percent of Pakistan’s power plants that have a total capacity of 23,840 megawatts. A fuel shortage has rendered half the nation’s generators idle.
“The energy crisis will be solved before the government’s term ends in 2018,” Abbasi said in a phone interview. “When a customer comes to us asking for gas, we can say, yes, we will deliver gas to you on this date. Earlier we said there is no gas, goodbye.”
Sharif’s plan to use LNG and build coal-fired electricity plants will help textile, fertilizer and steel producers boost output and spur growth that the nation’s power regulator estimates is 3 percentage points below potential.
Outages lasting 18 hours had led to street protests in Karachi as recently as June, while falling natural gas production at home forced companies such as Tuwairqi Steel Mills Ltd. to idle it’s plant.
Pakistan is going all out for LNG “as it’s become more affordable,” Vahaj Ahmed, an analyst at Exotix Partners LLP in Dubai said by phone. “This gives policy makers room to justify why they are going for it. The difference between imported and natural gas is very small now.”
About 60 million cubic feet per day of LNG imports will be reserved for textile companies that have export orders, according to the finance ministry. The industry accounts for about half of Pakistan’s total exports, which declined 14 percent in the six months to Dec. 31. Fuel pumps, which are often shut for days, will benefit from the imports in the nation that was once the world’s largest compressed natural gas market.
LNG for delivery in Northeast Asia has dropped about 75 percent since 2014, according to World Gas Intelligence data compiled by Bloomberg. Spot price of the supercooled gas is likely to trade between $4 and $5 per million British thermal unit over the next four years, Goldman Sachs Group Inc. analysts including Christian Lelong wrote in a report dated Jan. 31.
Pakistan will become one of the world’s top five buyers of LNG should the government’s plan succeed, according to Abbasi. The nation started importing LNG using a floating facility last year. Two more terminals are scheduled to be completed next year, Mobin Saulat, chief executive officer at Inter State Gas Systems told reporters last month. The nation got its first shipment last year.
The world’s top five LNG importers are Japan, South Korea, China, India and Taiwan, according to International Group of Liquefied Natural Gas Importers. Pakistan also separately agreed on a 15-year contract with Qatar.
LNG will improve diversification of Pakistan’s energy needs but its only one part of the equation, Mervyn Tang, lead analyst for Pakistan at Fitch Ratings Ltd. said in an e-mail. “Progress on multiple fronts could help foster a sustainable stable energy environment, with potential positive knock-on effects for private investment and economic growth,” he said.
Brother, when you wrote that LNG from Qatar is cheaper than gas from Iran, I was dumbfounded on your propaganda, but did not reply because I felt that since most Pakistanis on the forum are supposed to be educated and would know propaganda, especially propaganda that is so obvious, I kept quite, plus time restrain is also another factor.
Anyhow, today (as I read on TV sticker) Pakistani ‘Kazzab’ a ‘habitual liar’ who is now Prime Minister of Pakistan, said same and it make me feel angry that such liars rule Pakistan and want to make us fool officially.
So, I decided to put down the truth. In a sense, what you wrote and what habitual Liar (Nawaz Shareef) said is true if one compare price using two different years, one for Iranian gas (year 2012) and other for Qatar’s LNG (year 2016).
You quoted Price of Iranian gas when oil was over $100 a barrel, and quoted LNG from Qatar when oil price was $30 a barrel, than compared the two. What a deceptive propaganda, right?
Let see what wikipedia says about capacity, alternative and price:
From above it is clear that Iranian gas was $11 per MBTU in 2012 (not 2016) … and at same time (year 2012), Qatar’s LNG was $18 per MBTU.
Obviously, in 2016, price of Qatar’s LNG went down to ~$5.5 per MBTU (from $18 per MBTU) … but then Iranian gas price must be down too, that I believe could be ~$3.5 per MBTU (in 2016).
Nevertheless, you cannot quote Qatar’s gas price of 2016 and compare that with Iranian gas price of 2012. You should know that in 2007, when oil price was ~$60 per barrel, Iran was offering gas at $5 per MBTU. So, when oil price is ~$30 a barrel, I believe Iran offer price must be much lower than $5 per MBTU, could be even $3 per MBTU … obviously, cheaper then Qatar’s LNG Pakistan is getting at ~$5.5 per MBT.
As for Capacity (not requirement but capacity): That is no problem. Iran could provide even 55 billion cubic feet (or more) through IP (combined requirement of Pak and India), but Pakistani requirement was 8.7 billion cubic feet that could increase to 40 billion cubic feet over time, hence your statement that gas capacity of IP is 0.75 billion cubic feet that can be extended to 1 billion cubic feet, is blatant lie.
As for price:In 2007, Iranian IP gas price on offer was $5 per MBTU … because price of oil in 2007 was ~$60 per barrel, that in 2012 got doubled to around ~100 per barrel. But in 2016, price of oil is ~$30 per barrel, hence in 2016, IP gas price should be much lower than even $5 per MBTU.
Actually, in 2012, Qatar’s LNG price was $18 per MBTU that got reduced to $5.5 per MBTU in 2016. Iranian gas price must have gone down similarly, from $11 per MBTU in 2012 to probably $3.5 per MBTU in 2016.
[So, you did not lie about price, you only used 2012 price of IP gas when oil price was ~$100 per barrel and compared Qatar’s LNG price of 2016 when oil is around $30 a barrel … what a nice way to fool people ;)]
It also means, that Thugs in power are importing LNG almost double the price because they do not care for Pakistan and want to loot Pakistan, hence this import for commission and kickbacks.
Worse is that, after cheating Pakistanis and looting Pakistan, this habitual Liar and Thug (Nawaz Shareef) comes on TV, and try to make fool of people, using blatant lies and propaganda.
It is unfortunate that instead of using his appointed Pakistani Goebbels (Pervez Rashid), NS has become so confident that Pakistanis are ignorant fool and would believe his lies, he used TV to spread lies himself.
Lies are obvious too: Qatar LNG comes from same gas fields (PARS) from where Iran would have supplied Gas to Pakistan. Thus, it is obvious that LNG from Qatar cannot be cheaper than Iranian gas, as Qater would be supplying those gas after converting them to LNG.
Cost of containers and risk of transport brining LNG to Pakistan is in addition, while Iranian gas would be coming straight from the field as gas without need of transport cost.
Even the cost of pipeline would get amortized after few years, while transport cost of LNG would be recurring cost as long as Pakistan imports.
LNG coming to Pakistan using container is also not a secure supply route, as during any war, India could block these supply in sea. As for gas pipeline, it would be same as any pipeline within country, and would be safer than LNG coming using sea route.
So, it is obvious that importing LNG from Qater is not as economical and secure as getting gas from Iran using pipeline … but then, thieves and thugs ruling Pakistan like to become richer and richer at the expense of Pakistan and misery of Pakistanis.
As for amount of gas Pakistan can import using IP (as can be seen in wikipedia, and other articles), that can increase or decrease to fulfil all present and future requirements of Pakistan for generations.
For further information … I am including article that Wikipedia has used as reference, as it is good read. The article is from Business Recorder (Pakistan) written in 2012:
Please read to know true nature of IP and price of gas Pakistan could get through IP.
**
Please remember and think: [Brother desert Bird, you are first Muslim and Pakistani … so you should try to be honest and report truth after thinking and research, and avoid propaganda to make Thugs and Liars in power happy]
**In 2012 (oil was ~$100 per barrel), IP gas would have been $11 per MBTU … and LNG from Qatar $18 per MBTU …
Than in 2016 (oil ~ $30 per barrel), how can Qatar LNG price would go down to $5.5 per MBTU, still Iranian gas would be $11 per MBTU?
Especially, when we know that in 2007 when oil was ~ $60 per barrel, IP gas was available at $5 per MBTU. So, ot os obviously that when in 2016, oil price is ~$30 per barrel, IP gas must have come down to around $3.50 per MBTU? … think.
Worse is that, even if Pakistan is too weak (or scared) to go against USA wishes, hence could not import cheaper Iranian gas (and oil), so have to import from gulf states, present deal with Qatar make no sense, as we all knew before the deal that American sanctions over Iran is ending and thus Pakistan after that would be free to import from Iran.
But just days before sanctions got ended over Iran, Pakistan signing deal with Qatar for expensive gas shows how dishonest, devious and crooks present Pakistani politicians in power (government) are, and how much they care for Pakistan and Pakistanis.
But then, Goebbels of PMLN, who do not care for Pakistan or Pakistanis, and their only job is to loot and plunder Pakistan to enrich themselves, transferring Pakistani wealth abroad to acquire foreign assets (properties and cash) for themselves, they lie blatantly and do propaganda, so that they look good and fool Pakistanis, but Pakistanis should be careful about that and should not get fooled.
…
However, the US Department of Energy’s assistant secretary for international affairs told a news conference in Islamabad on Monday that some American sanctions were still in place.
“Pakistan will be entering gas agreement with major international gas suppliers very soon. The case of IP gas pipeline project is still to be judged,” Jonathan Elkind said while announcing the launch of a three-year technical assistance programme designed to support Pakistan’s energy development efforts…
What would the price be today if it was variable? No assumptions please. Only respond if you can quote sources.
No, gas price signed with Iran was never fixed, but was linked to crude oil price. Actually, 2007 deal signed was very attractive, though deal was again signed in 2009 and that was not so attractive (was double the price Pakistan-Iran agreed in 2007), nevertheless, both deals was better than what Pakistan would pay today for gas from Qatar. Details can be found on net (as I have read them sometime ago). If I would find the details again, I would post it.
Bhai, aap ka yea Ganja Sardar jhoot bol bol ker, Pakistan ko kab tak chuna lagata rahay ga … aur Pakistaniyon kee band bajata rahay ga? … … … Any idea?
Here is news of LNG deal between India and Iran … that was linked to Brent oil price. According to the article … there is floor and cap price of LNG. Floor price was for Brent oil at $10 per barrel and Cap price was for Brent at $31 per barrel. That means, if Brent goes above $31 a barrel, price of LNG would not increase, and if it goes below $10 a barrel than price of LNG would not decrease.
Taking that into account, the maximum Price India is to pay was $3.215 per MMBTU (million BTU) when Brent oil would be $31 a barrel.
Now, when oil is below $30 per barrel, how Pakistan negotiated LNG price above $5 per MMBTU … when India negotiated $3.15 per MMBTU, whatever the price of oil? … Well …
Chuna lagao aur Pakistanyon kee achchi tarah band bajao … kiya kiya jayea, Ganjay ka pait bohut bara hay, bharta hee nahi:)
As for Gas: Obviously, importing gas directly, it would be cheaper than LNG and Pakistan had the opportunity to import gas directly from Iran in gas form, but what one can do with big fat belly Pakistani political thugs have?
India needs Urea fertilizer for Indian farms, that obviously India can produce using LNG as India could not import gas in gas form from Iran.
Anyhow, for the purpose India is building Urea fertilizer factory in Iran and would import Urea Fertilizer from Iran (from Indian’s own factory). For that, Iran has offered India gas @ $2.95 per MMBTU but India wants Iran to reduce that price and offered $1.5 per MMBTU to Iran. Actually, India is telling Iran that if Iran could provide gas @ $1.5 per MMBTU than India would invest I Rs 2000 billion (I Rs 200000 crores) at Iranian Chabhar sea port … that comes to ~$30 billion (as $ = 68 I Rs). Obviously, it is expected that a new price between $1.5 and $2.95 per MBTU would get agreed.
I am sure that Pakistan could have negotiated and imported gas from Iran at same price what India would get for its fertilizer factory at Chabahar, that is between $1.5 and $2.95 per MMBTU … but Thug ko tou chuna lagana tha Pakistanyon ko … hence Qatar LNG @ ~ $5.5 per MMBTU
@desert bird … can you tell us, why Pakistan is buying LNG from Qatar at ~$5.5 per MMBTU, when Pakistan can negotiate and get LNG from Iran @ $3.215 per MMBTU or less … or gas at even less than $3 per MMBTU?
Can you tell NS that corruption money using state powers, has no forgiveness in front of Allah. Money belongs to people (whole nation), and only they can forgive, but obviously, it is not only impossible but impractical for whole nation to forgive such crimes (corruption) of anyone, and that means, people doing corruption using state power (politicians, bureaucrats, police, judiciary and other government servants), their future is certain Hell (fire of duzakh). …
But then, it is sad that haram-khors have no shame nor guilt, and they do not believe on ‘jaza-saza’ on judgement day or life after death. :
