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Gas deficit looms large as PLL fails to procure eight LNG cargoes for Dec-Jan

muhammadhafeezmalik

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Thanks for the info, is this from ministry yearbook report? So only 17 leases were granted in 5 years. Total of 1 in 2013, 6 (not 50) in 2014, 3 in 2015, 2 in 2016, 4 in 2017 and 1 in 2018.

Do you have similar chart for PTI's 3 years for comparison?
Development & Production Lease is third stage, first is Exploration License.

1634200024602.png


Page 33-35 shows how many licenses & Lease were issued to OGDCL only during 2013-18.

50 licences awarded for exploration of gas, oil

 

farok84

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Development & Production Lease is third stage, first is Exploration License.

View attachment 784861

Page 33-35 shows how many licenses & Lease were issued to OGDCL only during 2013-18.

50 licences awarded for exploration of gas, oil

Thanks for the link, much appreciated.

As per the report, only "1" new exploration license was being held by OGDCL which was awarded in 2015 and "0" in 2016, "0" in 2017, and "0" till 30 June 2018. Does the report not supporting PTI's assertion that PMLN government did not award enough licenses and was complacent in slowing down local exploration in favor of imported Lng? What conclusions should be deduced, that PMLN preferred PPL and other exploration companies? Or PMLN had exhausted all possible exploratory options after 2014 (50 licenses) award and there were no blocks left in Pakistan to be explored?

1634206723494.jpeg
 

Norwegian

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What else is new?

Imran Khan came to power to torture Muslims.

Everyday since this manhoos khabis Niazi came to power, only horrifying news comes on TV.

Gas, electricity, groceries, electronics, everything is either in shortage because haramkhor Imran Khan ate it all or it is expensive and unaffordable.

so yeah nothing new.
Bughaz Imran overdose
As per the report, only "1" new exploration license was being held by OGDCL which was awarded in 2015 and "0" in 2016, "0" in 2017, and "0" till 30 June 2018. Does the report not supporting PTI's assertion that PMLN government did not award enough licenses and was complacent in slowing down local exploration in favor of imported Lng?
You are dealing with a Pmln slave here who will still defend all the wrong doings of his govt.
 

muhammadhafeezmalik

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Thanks for the link, much appreciated.

As per the report, only "1" new exploration license was being held by OGDCL which was awarded in 2015 and "0" in 2016, "0" in 2017, and "0" till 30 June 2018. Does the report not supporting PTI's assertion that PMLN government did not award enough licenses and was complacent in slowing down local exploration in favor of imported Lng? What conclusions should be deduced, that PMLN preferred PPL and other exploration companies? Or PMLN had exhausted all possible exploratory options after 2014 (50 licenses) award and there were no blocks left in Pakistan to be explored?

View attachment 784903
PMLN did the right job. They issued exploration licenses in a large quantity in 2014 and than followed-up by issuing appraisal contracts, developments and production leases.

1634366254197.png

1634366289862.png
 

Vanamali

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TAP(Exclude I) isthe future of Pakistan as we now have peace in afghanistan.
With out "I", TAPI is not economically feasible... If Pak had put its ego and cooperated for completion of TAPI, all 4 countries would have flourishing trade and commerce... Pakistan now reaping results of its ghammand...
 

Genghis khan1

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Simple Question:
If Pakistanis can pay $15 billion annually for imported oil and gas, why can’t they use this money to build all the Dams without taking expensive loans.

Pakistani govt and overall establishment is so incompetent, that instead of one time investment into hydropower plants, they are paying every years to secure energy needs.
 
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Qutb-ud-din Aybak

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Simple Question:
If Pakistanis can pay $15 billion annually for imported oil and gas, why can’t they use this money to build all the Dams without taking expensive loans.

Pakistani govt and overall establishment is so incompetent, that instead of one time investment into hydropower plants, they are paying every years to secure energy needs.
Government can't stand to mafia. Otherwise we can easily switch to electric vehicles by giving incentives to EV manufacturer.
 

Rahil khan

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Simple Question:
If Pakistanis can pay $15 billion annually for imported oil and gas, why can’t they use this money to build all the Dams without taking expensive loans.

Pakistani govt and overall establishment is so incompetent, that instead of one time investment into hydropower plants, they are paying every years to secure energy needs.
Pakistani establishment was involved in two Afghan wars during last 40 years. They had other priorities besides having 2 unquestioned long tenures...the rest of 20 years belong to incompetent political set ups who faced constant threat of removal from the office. Who should be blamed? Ask yourself:unsure: ?
 

farok84

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PMLN did the right job. They issued exploration licenses in a large quantity in 2014 and than followed-up by issuing appraisal contracts, developments and production leases.
Hi,

Once a commercial discovery is made, it is natural to move on to development and production phases (kind of whole idea behind exploration). A government should be judged on the efforts and finances it is pouring in local exploration rather than its efforts on development and production of already discovered fields. It was criminal negligence of PMLN government to ignore Pakistan's local exploration prospects. I had tried to explain this to another gentleman back in 2018.

Please read an abstract from the article;

"It provisionally awarded licences for many blocks in January 2014, which was expected to attract an investment of $371 million in the first phase.

After that, the PML-N government did not award any block to the exploration and production companies. It banked on LNG imports and overlooked the country’s hydrocarbon deposits, inviting criticism from energy-rich provinces."

It's criminal negligence of PMLN government for not exploring new prospects. And yes, if you have unexplored promising prospects, governments all around the world double their exploration efforts. Here is an example,

https://www.reuters.com/article/us-...ord-75-oil-exploration-licenses-idUSKBN1F51UL

Abstract from above article;

"In total, 39 firms had applied for the offered acreage, up from 33 companies that applied in the previous round a year ago, when the ministry awarded 56 exploration licenses."

They awarded 56 licenses in Jan 2017, 75 in Jan 2018, and are planning their next round for Jan 2019, for which 38 oil companies have already bid.

https://www.reuters.com/article/nor...38-oil-firms-in-licensing-round-idUSL5N1VT2TT

"Officials pointed out that during the PML-N government's tenure, 46 new exploration licences and 51 leases were granted. However, the bidding round for these blocks was held by the PPP government in 2013.

According to the officials, 113 new oil and gas discoveries have been made in the past around five years and 73 supplemental agreements have been signed to provide better price incentives of the 2012 petroleum policy for holders of older petroleum concession agreements.

At present, Pakistan produces around 4 billion cubic feet of gas per day (bcfd) and 86,000 barrels of oil per day.

The PML-N government had agreed with provinces by the end of 2017 on holding a fresh round of bidding for petroleum exploration blocks in an effort to tap new reserves and allay concerns of the provinces.

It provisionally awarded licences for many blocks in January 2014, which was expected to attract an investment of $371 million in the first phase.

After that, the PML-N government did not award any block to the exploration and production companies. It banked on LNG imports and overlooked the country's hydrocarbon deposits, inviting criticism from energy-rich provinces."


Provinces argued that the central government's failure to auction exploration blocks over the past four years had hampered the search for oil and gas. "It further caused losses of billions of rupees to provincial governments in the shape of lost royalty and gas development surcharge," they said.

Khyber-Pakhtunkhwa (K-P) had pointed out that not a single block had been put up for auction since 2014 out of 35 identified sites. Lease agreements struck before 2012 had also expired and were not being renewed, it said."
 

Genghis khan1

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Pakistani establishment was involved in two Afghan wars during last 40 years. They had other priorities besides having 2 unquestioned long tenures...the rest of 20 years belong to incompetent political set ups who faced constant threat of removal from the office. Who should be blamed? Ask yourself:unsure: ?
That’s an excuse. There’s no correlation between Afghanistan and Pakistan’s incompetence in managing it energy policy.
 

Rahil khan

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That’s an excuse. There’s no correlation between Afghanistan and Pakistan’s incompetence in managing it energy policy.
Than i still wonder what stopped Musharraf from building Basha Dam and Munda despite the fact that he announced initiating these projects back in early 2000s during his address to the nation. Economy was much better than, GDP touched highest 8.1 in 2005. We required 6 billion USD in 2000s...Now it's over 15 billion USD.
Only major progress we have witnessed during last 20 years is the acquisition of the land worth over 100 billion PKR during the time of previous government. Nothing major since than.
 

Baghial

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The unprecedented gas deficit in the forthcoming winter season has become inevitable as Pakistan LNG Limited (PLL) has failed to attract the LNG trading companies in response to its tender floated on September 11, 2021 seeking eight LNG cargoes, four each for December and January.

This means the country will not be able to import 1.2 bcfd LNG each in December and January --- peak demand season in winter, instead it will be able to import just 900mmcfd in each month with a deficit of 300 mmcfd. In November, the government will import 1bcfd against 1.2 bcfd capacity.

In the wake of no response from LNG trading companies, in December and January, PLL’s 600 mmcfd capacity at PGPCL terminal will remain underutilized by 300 mmcfd each month. “This would be a double jeopardy for the government creating a mammoth political backlash from the masses sick of high inflation for a very long time,'' a senior official at the Energy Ministry privy to the development told The News.

“The production of local gas has fallen to 2.8 bcfd and the country can import 1.2 bcfd LNG which will not be fully exploited in the coming winter. In the winters the demand goes up to 5 bfcd whereas the country will only have 3.7 bcfd in December and January for failure in purchasing eight LNG cargoes.’

There would be a sizeable gas crisis even if the government manages the 8 LNG cargoes during the peak demand in December and January, but under new scenario without contracting the required tender, the gas crisis intensity would increase to a level where for the government would not be able to provide gas to power and export sector. The domestic sector may also face the maximum load shedding apart from zero gas supply of non-export, commercial and CNG sector.

“This means that in December and January, the country’s economic and industrial activities will virtually come to standstill,” the official said. The Pakistan LNG Limited (PLL) confirmed the development saying that in response to its PPRA compliant tenders floated on September 11, 2021 seeking 8 LNG cargoes, four each for December, 2021 and January 2022, it has not received any bids.

The LNG companies may not have submitted their bids on account of PPRA compliant tender, as under its rules the PPL is bound to hold the bids for 15 days discouraging the companies to come up with bids at a time when LNG spot prices have crossed $35 per MMBTU. Against the backdrop, the PLL got an exemption from PPRA on September 21, 2021 for spot purchasing which did not prove fruitful as it had already issued tenders on September 11, 2021.

The official at the Energy Ministry said that in November, PSO will have 6 term cargoes and PLL will have four including one cargo from Qatar at 10.2 percent of the Brent. However, in December and January the country will have 9 LNG cargoes (6 by PS0 and 3 by PLL) in each month against the demand of 13 cargoes per month. So there will be an unprecedented gas crisis in December and January. He said Bangladesh purchased LNG under spot purchasing at over $30 per MMBTU some days back which has now further increased over $35 per MMBTU.

The official said that the prices of LNG in the spot market have increased mainly because of the massive demand by EU countries as Russia has massively squeezed the gas supply to whole Europe after Germany raised the issues of sanctioned companies involved in building the Nord Stream 2 undersea gas pipeline. The LNG demand has also been driven as China is abandoning power generation based on coal as fuel.

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gabrahna nien ha
 

Genghis khan1

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Than i still wonder what stopped Musharraf from building Basha Dam and Munda despite the fact that he announced initiating these projects back in early 2000s during his address to the nation. Economy was much better than, GDP touched highest 8.1 in 2005. We required 6 billion USD in 2000s...Now it's over 15 billion USD.
Only major progress we have witnessed during last 20 years is the acquisition of the land worth over 100 billion PKR during the time of previous government. Nothing major since than.
One word, Incompetence.

US deep state build there long term policies. They have experts in every field. They design and can manipulate US Dollar, international trade, geopolitics with sanctions and threats for US interest. Even the US Presidents is their vetted puppet, who lives inside Presidential cage. Candidate vetting is done on every stage of the elections.

Pakistan on the other hand. Either one man dictatorship or corrupt politicians, whose whole objective is to enjoy the trip while it last.
 

Rahil khan

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One word, Incompetence.

US deep state build there long term policies. They have experts in every field. They design and can manipulate US Dollar, international trade, geopolitics with sanctions and threats for US interest. Even the US Presidents is their vetted puppet, who lives inside Presidential cage. Candidate vetting is done on every stage of the elections.

Pakistan on the other hand. Either one man dictatorship or corrupt politicians, whose whole objective is to enjoy the trip while it last.
It's more than just incompetence my friend which i can't explain here. But the arrival of a Chanda Collector on Prime Minister's seat has proved to be final slap on our face. May be my words are bit harsh but trust me, next couple of years will be hellish here in Pakistan.
 

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