ice_man
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I cannot believe Zardari did it and that too in the face of immense US pressure.
this is just an election gimmick nothing to get excited about!
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I cannot believe Zardari did it and that too in the face of immense US pressure.
that very unbelievable.. so much that im finding it hard to digest
What kind of economic calculation justifies a price for the commodity at 4 times the prevailing market prices?
Pakistan energy problems are very serious and one must look at the ground realities first.
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If IP comes to fruition, well and good but it is stupid to put all your eggs in one basket. A multi-pronged approach is needed.
a. Circular debt. Borrow or beg, but circular debt needs to be cleared in its entirety.
b. GOP depends upon FDI for new power projects for which we need good law & order situation. Supporter of TTP & Lej have to accept elimination of TTP & Lej or live with 18 hour black outs for ever.
c. Increase well head gas price in Pakistan to about $5 per mmbtu to encourage investment in exploration & tight gas.
d. Give development of Thar coal top priority.
e. Subsidize solar panels & encourage investment in wind power.
@niaz do u know how much will we be paying Qatar for LNG and also TAPI per mmbtu?
so if india is getting at $10 per mmbtu then this deal seems reasonable. wat do u think @Argus Panoptes?
and this spot price of 16$ per mmbtu is in the international market or regional?
Can you prove that Iran gas is more expensive than the alternative
@niaz do u know how much will we be paying Qatar for LNG and also TAPI per mmbtu?
so if india is getting at $10 per mmbtu then this deal seems reasonable. wat do u think @Argus Panoptes?
and this spot price of 16$ per mmbtu is in the international market or regional?
New York Mercantile Exchange or Nymex futures have touched $17 in 2008 but with fracking, the same are now down to less than $4/mmbtu. Qatar price is FOB Qatar add freight to it for delivered price to India which should be close to $11.00/mmbtu.
I had heard that talks with India for additional quantity broke down because Qatar wanted $11 per mmbtu FOB. There is a publication called LNG daily which gives current prices but I don’t subscribe to it and my ex company where I still have access only subscribes to crude and product price publications.
Based on October 11, 2012 quotations; Japan Dec 2012 LNG price was about $13.40 per mmbtu, North West Europe Dec. futures because of North Sea gas were $9.85/mmbtu. FOB Arab Gulf was priced at $9.85 & delivered West Coast India $10.45/mmbtu. On the other hand US futures were $3.22.
It must be kept in mind that most term contracts would have an escalator/de-escalator in the price clause. For example if crude drops to $80 per bbl, LNG term price will also drop and if it shoots up to $150 /bbl. the price will also go up. Can’t be sure but I remember reading somewhere that Pakistan LNG price was about 80% of the price of Dubai crude international price.
Can you prove that Iran gas is more expensive than the alternative
I................
Hon Argus Panoptes.
I beg to disagree about your comments on the Thar coal. One of the advantages of German unification was access to East German lignite. Lignite is now one of important sources of energy in Germany.
EURACOAL - European Association for Coal and Lignite
Thar coal is not a mirage. Pakistan cannot afford to depend upon imported energy. That is recipe for bankruptcy. Frankly speaking Pakistan has only two long term choices.
Either go the Atomic route that India has been offered from the US. This is clearly not on the cards given strong anti US feeling and that fact that Taliban/Khilafat lovers would rather eat grass and enjoy 72 houris in the after life (could be a billion years from now) than go into bed with the US to get access to cheap nuclear technology.
Alternately exploit what you have and Thar lignite is there to be exploited. All other options such wind energy & solar power cannot resolve Pakistan’s energy problem. Of course if we can find 50-billion barrels of oil, all problems disappear, but can we for ever live in the hope of winning lottery? I rest my case.
Back to the topic of this thread, I fear that IP pipeline project will give us the worst of both worlds: high priced gas from Iran that we cannot afford to use economically, and potential sanctions from the West on top of that. Only fools rush in where the wise fear to tread.