$15 billion LNG deal with Qatar finalized

kakaballi · February 16, 2016, 3:30am

Re: $15 billion LNG deal with Qatar finalized

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A huge gas pipe is also proposed from Iran to Europe, brining Iranian gas into world market in big way.

**Not expected at least in the next 10 years. No infrastructure available.
**
New gas fields are also found in Europe, and demand of gas has decreased substantially.

Making it not feasible for Europe to buy from Iran.

Hence … world LNG price has tumbled to below $3 per MMBTU in open market.

**Source?

Global LNG Prices
**

I am pretty sure that if Pakistan wanted to, Pakistan could have got Gas from Iran at rate ~ $ 2 per MMBTU.

Source? Assumptions? ‘could have’? Why didn’t earlier governments move on Iran gas pipeline?

…Anyhow, here is world gas price in open market …

*Wrong. These are North Amereican domestic market prices at North American wellheads for domestic consumption. (http://blog.financial.thomsonreuters.com/lng-outlook-2016-whats-all-the-hub-bub/)

that I believe is actually LNG price, as gas is normally exported/imported from one country to another through pipes, or in the form of LNG.

WRONG again. These are natural gas prices, as labelled. (http://www.worldoil.com/news/2016/01/13/us-australian-lng-start-ups-in-2016-but-real-lng-growth-yet-to-come)
**
So … question is, when Pakistan could have got gas from open market (not even Iran, rather from open market) at below $3 per MMBTU,
**
again, ‘could have’.
.
Who took the commission and who made money on this deal … any idea?

Everyone involved, I guess.

While it is expected that Iran gas pipeline would be a cheaper option but it is politically not feasible (for any government in Pakistan). You can make a case for it without resorting to this kind of ‘analysis’ and bad assumption.

While India is importing LNG from Qatar at $6- $7, this deal doesn’t sound TOO bad for Pakistan.*