Expensive LNG: Pakistan to pay additional USD 2.5 billion to Qatar

[Peregrine_Falcon]

Price of 2 Qatari letters probably

Expensive LNG: Pakistan to pay additional USD 2.5 billion to Qatar
Last Updated On 04 February,2017 10:53 am

National exchequer would bear said burden as price of LNG offered by Qatar is relatively higher.
ISLAMABAD (Daily Dunya) - Ministry of Petroleum will pay an additional amount of Rs250 billion to Qatar on import of Liquefied natural gas (LNG).

Price for each cargo was agreed at 13.37 per cent of Brent whereas Italy’s ENI had offered price of each cargo at 11.62 per cent of Brent thus resulting in huge difference of 2.16 per cent, revealed persons related to business of LNG.

National exchequer would bear said burden as price of LNG offered by Qatar is relatively higher when compared with price being offered by other international companies.

Analysts believe that end of Iran’s isolation would slash price of LNG by half as international community is lifting sanctions from Khamenei’s state. Furthermore, Japan and South Korea are again operating nuclear power plants and this phenomenon is bringing LNG’s price down in international market.

Another representative of international company told Dunya News that ministry of petroleum should had issued tenders of three to five years instead of fifteen years.

Last year, Pakistan and Qatar had inked agreement in Doha according to which later would provide thirty-five million tonnes of LNG gas to earlier during period of fifteen years.

Source:

http://dunyanews.tv/en/Business/373607-Expensive-LNG-Pakistan-to-pay-additional-USD-25-

http://eurasiadiary.com/en/news/eco...tan-to-pay-additional-usd-25-billion-to-qatar

@Syed1. @Doordie @Dastaan @Farah Sohail @war&peace @JOEY TRIBIANI @newb3e

@graphican
@PakSword
@Skywalker
@Mrc
@Zibago
@Jonah Arthur
@WAJsal

 

[Khafee]

@Horus Your comments?

 

[Dark-Destroyer]

Letters aren't given for free they come at a price ... Allhamdulilah .. jhoot toh mujeh boolnah aahtah nahii

 

[H!TchHiker]

1) 13.37$/MMBtu the most expensive LNG in the whole world..A shady deal from the beginning without vetting process and only qatar was contacted directly...Surely Saif-ur-Rehman did well for himself and NZ.

2) Qatar can cancel the agreement any time after serving a 90-day notice.

3) The deal will become ineffective in case of a war that lasts 30 days.

4) The agreement was executed by Prince nawaz Bin Sharif directly and forced PSO to sing the agreement with Qatar gas to avoid state to state agreement and made it Spot-purchase agreement with commitment for 15 years. MD SNGPL resign after he was forced to sign the agreement.

5)India in 2015 strike a deal with Exxon Mobil-owned Gorgon LNG plant in Australia that will cost them 8.2$/MMBtu

6)Korea is importing @8.77$/MMbtu, Jappan @8.77, India @8.2, China @8.62, Spain @6.76, Brazil @8..

Don't know which side NZ was representing..

 

[Khafee]

1) 13.37$/MMBtu the most expensive LNG in the whole world..A shady deal from the beginning without vetting process and only qatar was contacted directly...Surely Saif-ur-Rehman did well for himself and NZ.

2) Qatar can cancel the agreement any time after serving a 90-day notice.

3) The deal will become ineffective in case of a war that lasts 30 days.

4) The agreement was executed by Prince nawaz Bin Sharif directly and forced PSO to sing the agreement with Qatar gas to avoid state to state agreement and made it Spot-purchase agreement with commitment for 15 years. MD SNGPL resign after he was forced to sign the agreement.

5)India in 2015 strike a deal with Exxon Mobil-owned Gorgon LNG plant in Australia that will cost them 8.2$/MMBtu

6)Korea is importing @8.77$/MMbtu, Jappan @8.77, India @8.2, China @8.62, Spain @6.76, Brazil @8..

Don't know which side NZ was representing..

Seems like Spinach took some time to work, but it is working. Daer aya, liken dorust aya

 

[H!TchHiker]

Seems like Spinach took some time to work, but it is working. Daer aya, liken dorust aya

LOL yes it always take some time when i am in office ..Actually i am the admirer of His highness NZ being a shrewd white color criminal he always come out clean

 

[SBD-3]

Price for each cargo was agreed at 13.37 per cent of Brent whereas Italy’s ENI had offered price of each cargo at 11.62 per cent of Brent thus resulting in huge difference of 2.16 per cent, revealed persons related to business of LNG.

According to final bid results, Gunvor has quoted the LNG price at 11.62 per cent of a barrel of crude oil (Brent) for short-term supply for five years. This will be Gunvor’s second five-year contract after the one it signed early last year. Eni came up with a bid price of 12.29pc of crude oil price for long-term 15-year contract.
http://www.dawn.com/news/1309555
ENI's LNG project is still under development with Mozambique. I don't know if they would guarantee any shipment vs Qatargas who is the biggest active supplier of LNG

Mozambique and Italy's Eni (ENI.MI) have signed a 20-year deal to sell BP (BP.L) liquefied natural gas (LNG), an important step in getting a long-delayed project off the ground, state energy firm ENH said on Tuesday.

http://uk.reuters.com/article/uk-mozambique-gas-idUKKCN12419O
http://www.platts.com/latest-news/n...proves-coral-lng-spending-plan-moves-26600133

 

[notorious_eagle]

Price of 2 Qatari letters probably

Why are you getting upset? You thought those letters came for free. Mega Projects have been handed over to Qatar since the 90's without any competitive bidding. This is why one of their corrupt princes was so happy to send these letters to Sharif Family.

 

[Peregrine_Falcon]

According to final bid results, Gunvor has quoted the LNG price at 11.62 per cent of a barrel of crude oil (Brent) for short-term supply for five years. This will be Gunvor’s second five-year contract after the one it signed early last year. Eni came up with a bid price of 12.29pc of crude oil price for long-term 15-year contract.
http://www.dawn.com/news/1309555
ENI's LNG project is still under development with Mozambique. I don't know if they would guarantee any shipment vs Qatargas who is the biggest active supplier of LNG

This is the new deal this year not the one which was awarded to Qataris last year which was awarded without even any competitive bidding

 

[SBD-3]

This is the new deal this year not the one which was awarded to Qataris last year

Probably you should read the context first. ENI didn't start bidding until recently as they need funds to develop the field

An official who followed the bidding process said the fresh price offered by Gunvor for the next five years would work out at $5.81 per million British thermal units (mmBtu) against previous price of $6.68 per mmBtu. Therefore, the fresh supplies would be cheaper, having a cumulative five-year impact of $600m.

Even the Gunver came in for a lower price of new short term contract because the prices of natural gas slumped again recently after warmer winter in US.
Plus deal with Qatar gas was non standard

Mr Abbasi who appeared happy with the price decline said there were a number of flexibilities in the ongoing deal with Qatar and many aspects had price build ups. Under the Qatar deal, we can cancel shipments without penalties that was not possible in fresh bids.

An official said the first shipment under the fresh bids was now expected to reach Karachi by July this year. Both the successful bidders would be required to ensure one shipment each every month. As such, Gunvor would ensure 60 ships in five years and Eni would provide 180 ships in 15 years.

At least first two shipments were delayed due to dridging problems at PQK

 

[Peregrine_Falcon]

Even the Gunver came in for a lower price of new short term contract because the prices of natural gas slumped again recently after warmer winter in US.

1. Korea is importing at a rate of 6.64 $/mmbtu
Source: https://www.energyaspects.com/publications/view/south-korea-gas-data-april-2016

2. Japan is importing it at a rate of 7.10 $/mmbtu
Source: https://ycharts.com/indicators/japan_liquefied_natural_gas_import_price

3. India is importing it at a rate of 5-7 $/mmbtu even from Qatar
Source: http://www.lngworldnews.com/minister-india-saving-3-bln-on-revised-lng-import-deal-with-qatar/
http://oilprice.com/Energy/Natural-Gas/Growing-India-Becomes-Major-LNG-Player.html

4. China is importing it at a rate of 4.9 $/mmbtu vs 6.8 $/mmbtu

Source: https://www.energyaspects.com/publications/view/2016-12-22-natural-gas-china-gas-data-nov-2016

 

[SBD-3]

1. Korea is importing at a rate of 6.64 $/mmbtu
Source: https://www.energyaspects.com/publications/view/south-korea-gas-data-april-2016

According to customs data, the average import price of gas in April was 6.64 $/mmbtu.
20 May 2016
The Brent price was hovering around 40$ in May 2016 against 56$ now. Please recheck to see where the average import price stands now.

3. India is importing it at a rate of 5-7 $/mmbtu even from Qatar
Source: http://www.lngworldnews.com/minister-india-saving-3-bln-on-revised-lng-import-deal-with-qatar/
http://oilprice.com/Energy/Natural-Gas/Growing-India-Becomes-Major-LNG-Player.html

India renegotiated its price after Qatar-Pak deal. Prior to that they were happily paying

[India currently buys around 7.5 mtpa of LNG per year from Qatar at a rate of $13 per million British thermal unit (MMBtu) as a part of a long term 25 year contract

That is 10 years longer contract than Pakistan (15 Y)

4. China is importing it at a rate of 4.9 $/mmbtu vs 6.8 $/mmbtu

Source: https://www.energyaspects.com/publications/view/2016-12-22-natural-gas-china-gas-data-nov-2016

You qouted the price without even reading it properly

Chinese LNG imports are higher y/y by 4.8 Mt (30%) at 22.4 Mt. Pipeline supplies grew more modestly in November, edging up y/y by 0.13 Mt (7%) to 1.96 Mt, despite the fact that the price of pipeline imports remains cheaper than average LNG imports in November (4.9 $/mmbtu vs 6.8 $/mmbtu).

China imported more LNG at 6.8$ despite it being more expensive than importing gas from Russia through pipeline (which is obviously cheaper but requires greater initial overhead)

 

[Burhan Wani]

What happened with Iranian deal?

 

[SoulSpokesman]

HH sb,

13.37$/MMBtu the most expensive LNG in the whole world..

Please dont distort things. The contract is 13.37% of Brent, the price is not $13.37/MMBTU. Price is lot less. Some of the lower prices quoted here have been entered into when oil prices were lower and outlook was gloomier. Stop abusing MNS for no rhyme or reason.

Regards

 

[AZADPAKISTAN2009]

It is generally stupidity on part of our government not to proceed urgently on Gas deals with Iran , as it would drastically diversify supply of Gas , giving people much options to pick and choose gas providers

Diversify gas options

• Local
  
• Qatar
  
• Iran
• Russia/ Central asia pipeline