LNG price internationally dropped to $4 but Pakistan lodged in a 15yr contract.

[Path-Finder]

https://twitter.com/x/status/1228009884886740992

i think the quom deserves it! how can this contract be resolved ?

 

[FuturePAF]

Who is the contract with? It it is with Qatar, they may off a discount to market rate in exchange for more services at the up coming FIFA World Cup. Pakistan can try to renegotiate some of these contract with friendly nations in good faith, on the basis of resetting relations with a populist government. It may not work but it’s worth a try by the foreign office.

 

[Syed1.]

Thank you Shahid Khaqan Abbasi for raping the country

 

[Jf Thunder]

what about all the other extremely inflated prices of EVERY OTHER DAMN THING?
maybe if this Govt comes out of the past, maybe, just maybe they may do something good for once

 

[Turingsage]

Thank you Shahid Khaqan Abbasi for raping the country

PAKISTAN IS PAYING EXACTLY DOUBLE FOR EVERY MEGAWATT OF COAL THERMAL ADDITION UNDER CPEC COMPARED TO INTERNATIONAL BUILD PRICE FROM OTHER VENDORS.

In other words Pakistan is paying twice the standard construction charge to China for what are clearly obsolete coal powered stations.
We are talking billions here and this has to be repaid with interest on top

 

[niaz]

According to Bloomberg, today's Brent price was $55/bbl. Pakistan's long term LNG contract with Qatar is at 13.37% of Brent. This translates into a price of $7.36 per mm BTU ex ship.

According to market sources, the benchmark for spot Asian LNG prices, JKM, has fallen more than 40% from the beginning of 2019 to about $5.20/MMBtu by the end of the year due to a wave of new supply from Australia and the US, and slowing demand growth in China.

Australian LNG is manufactured from the Methane associated with Coal mines of Australia. However, this is a comparatively recent phenomenon. Hence in the Sept 2019, Pakistan tender 'Spot' prices quoted ranged from 8.7% (for one cargo) to 10.3% of Brent ex-ship. One must also realize that Spot prices are not always cheaper as the same can go up as easily as come down and supply is not assured. No country will rely on spot cargo to meet her energy demand. As in the case of Refinery product planning, you rely on term contracts from 80% of your requirements, leaving 20% to buy on Spot.

The real reason for the drop in the LNG prices is the slow down in the GDP growth of China & India from the 2017/2018 period. How many people could have predicted in 2018 that Indian economic growth will slide down to about 5% from the 8% of the last 5 years or that Coronavirus and Hong Kong turmoil will seriously impact the economic activity in China? Everyone has 20/20 Hindsight and it is always easy to criticize after the event.

By the way, JKM is the Japan Korea Marker commonly used as the LNG Spot price assessment in the East, just like the Henry Hub used as the marker for NewYourK futures for Gas contracts.

 

[Gorgin Khan]

Actually shahid khaqan raped thieves like omer ayub from making money thats why his *** is on fire. Its a known fact that how much we saved through this contract when prices were sky rocketing till today. Ask this son of plato the oil prices also went down why dont he cry about it, why is oil prices not coming down.

Will he guarantee that the prices will not go up when chinese economic engine starts working at its full pace again. Will he pay from his pocket and allowed to be raped by Pakistanis if he fails to do so.

Qom e youth just wants to make Rola of everything that they are not making money of. Genetic thieves !

 

[crankthatskunk]

That Kanjar Khaqan was giving the lecture on democrazy to Pakistani nation.

The worst character in the soap opera of the corrupt mafia/thugs are the courts of Pakistan.
Who cannot see no evil, hear no evil.

I think the judges of Pakistan should be hanged first and foremost.

 

[Dubious]

Thank you Shahid Khaqan Abbasi for raping the country

Actually shahid khaqan raped thieves like omer ayub from making money thats why his *** is on fire. Its a known fact that how much we saved through this contract when prices were sky rocketing till today. Ask this son of plato the oil prices also went down why dont he cry about it, why is oil prices not coming down.

Will he guarantee that the prices will not go up when chinese economic engine starts working at its full pace again. Will he pay from his pocket and allowed to be raped by Pakistanis if he fails to do so.

Qom e youth just wants to make Rola of everything that they are not making money of. Genetic thieves !

That Kanjar Khaqan was giving the lecture on democrazy to Pakistani nation.

The worst character in the soap opera of the corrupt mafia/thugs are the courts of Pakistan.
Who cannot see no evil, hear no evil.

I think the judges of Pakistan should be hanged first and foremost.

I wish the messed up court / judges would make him pay from his pocket the difference for 15 years!But alas the courts themselves arent clean enough to show justice!

 

[niaz]

It appears that just like in the parliament, the use of bad language has become more common in this forum as well. I am sure that the same sentiment could have been expressed in a more civilized manner through words such as 'Scoundrel' or unscrupulous etc.

I would be probably the last one to suggest that there should be a censor, but words like 'Kanjar' (Son of a prostitute) implying that his father was unknown, are not appropriate and should not be used in civilized discussions. I would request the Mods to make an effort to raise the standard of this forum by suggesting that honorable members should refrain from using derogatory language in their posts.

 

[AZ1]

According to Bloomberg, today's Brent price was $55/bbl. Pakistan's long term LNG contract with Qatar is at 13.37% of Brent. This translates into a price of $7.36 per mm BTU ex ship.

According to market sources, the benchmark for spot Asian LNG prices, JKM, has fallen more than 40% from the beginning of 2019 to about $5.20/MMBtu by the end of the year due to a wave of new supply from Australia and the US, and slowing demand growth in China.

Australian LNG is manufactured from the Methane associated with Coal mines of Australia. However, this is a comparatively recent phenomenon. Hence in the Sept 2019, Pakistan tender 'Spot' prices quoted ranged from 8.7% (for one cargo) to 10.3% of Brent ex-ship. One must also realize that Spot prices are not always cheaper as the same can go up as easily as come down and supply is not assured. No country will rely on spot cargo to meet her energy demand. As in the case of Refinery product planning, you rely on term contracts from 80% of your requirements, leaving 20% to buy on Spot.

The real reason for the drop in the LNG prices is the slow down in the GDP growth of China & India from the 2017/2018 period. How many people could have predicted in 2018 that Indian economic growth will slide down to about 5% from the 8% of the last 5 years or that Coronavirus and Hong Kong turmoil will seriously impact the economic activity in China? Everyone has 20/20 Hindsight and it is always easy to criticize after the event.

By the way, JKM is the Japan Korea Marker commonly used as the LNG Spot price assessment in the East, just like the Henry Hub used as the marker for NewYourK futures for Gas contracts.

Why having contract for 15 years?

 

[Norwegian]

what about all the other extremely inflated prices of EVERY OTHER DAMN THING?
maybe if this Govt comes out of the past, maybe, just maybe they may do something good for once

Because everything is transported on oil and gas prices.

 

[Thorough Pro]

It's always a gamble, but the energy prices normally always go up. they are down now, lets see how long they stay there.

https://twitter.com/x/status/1228009884886740992

i think the quom deserves it! how can this contract be resolved ?

 

[SoulSpokesman]

@niaz

Sb,

Thanks for bringing some real knowledge and even more important some civility to this forum!

Regards

 

[Sine Nomine]

I wish the messed up court / judges would make him pay from his pocket the difference for 15 years!But alas the courts themselves arent clean enough to show justice!

As a mod you should have atleast bothered checking way of expression.
P.S:-What if prices go up?Would you like giving money to khaqan for that?

Today average price of one barrel of crude oil which is of 159 litres is around 55.5 USD,that was around 111.2 in 2012.
In 2012 price of diesel was around 85 in Pakistan while today it stands at 127.
In nutshell oil industry is very volatile in terms of pricing.