I am not talking about danger to the democracy, I am concerned with the LNG deal only.
I had great respect for Rauf Klasra but after reading this article I have come to the conclusion that he is also ‘Lifafa’ generalist like any other.
I have already stated that petroleum and associated products are my fields where I spent more than 40 years of my working life. I can say for certain that no one can build floating storage, receiving & regasification LNG Unit (FSRU) in Pak Rs 3-billion which at that time was equal to $30-million (currently about $18-milion) only. This is obviously a figure picked out of the air by Mr.Rauf Klasra. A new FSRU costs close $300-million which is Pak Rs 30-billion.
"They cost about $300 million to build, or half as much as an onshore import terminal, and are up and running as much as six times faster, sometimes within as little as a year, according to owners Hoegh LNG and Excelerate Energy". Full article at :
http://gasprocessingnews.com/news/fsru-ships-in-high-demand-as-buyers-seek-quicker-route-to-lng.aspx
Even a second-hand FSRU (A ship with all the associated facilities) will set you back in excess of $150-million. This for the vessel alone, then there is an investment in the on-shore receiving & pumping facilities such as a Jetty for the FSRU to dock, piping, onshore gas storage tanks & pumps and the purchase of land which would cost another $60 to $70-million. Making total cost close $370-million.
Operating expenses of an FSRU are roughly in the range of 2.5% of the Capex, which at $300-million come to around $9-million per annum. ENGRO is allegedly receiving $272 K per day which $99.3-million per year. After deducting $9-million as operating expenses, it leaves Engro $90-million out of which bank interest has to deducted, I would guess investors are getting a return of about 20% may even be 25%. Very good but not uncommon in business ventures, however no way near the highway robbery that Mr.Raff Klasra is implying.
This is the ultimate malafide spin. I have no ax to grind and giving my opinion as an oil professional only. Whatever he may be guilty of, I genuinely believe that LNG deal was a good deal and professionally handled by Shahid Khaqan Abbasi.
However, it appears that most of my fellow members would rather believe sensation creating newspaper columnists who know next to nothing about the international LNG market or its operations; I see no point in carrying on with this topic. Let people believe what suits their fancy.
