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

[Zane_K]

Let me take a wild guess.

Ancestral inheritance and business ventures which create triple returns than what you would get in UK?

Ha.. it’s always a joy interacting with you.

 

[El Sidd]

Ha.. it’s always a joy interacting with you.

It's not rocket science.

I like how a monarch subject has to say in critique of democracy in Pakistan.

 

[Zane_K]

It's not rocket science.

I like how a monarch subject has to say in critique of democracy in Pakistan.

vir sive mulier in conspectu genua non ego

 

[El Sidd]

vir sive mulier in conspectu genua non ego

let me turn a shade of pale for you Bishop

 

[Zane_K]

let me turn a shade of pale for you Bishop

hmmm...not sure what that means but you go ahead.

 

[niaz]

Sir your post is not making sense. If decrease in price is due to world evonomic situation then it is also applicable on prices therefore ratio of lng spot prices v/s oil rates should have been within a certain threshhold. If you can validate your point by sharing ratios of lng v/s brent spot prices in 2014 and 2015 it will be great. Furthermore how much discount did we get by entering into a 15 year contract considering that in 2015 renewable energy was already cheaper and electric cars were also available and everyone was predicting reduction in demand of fossil fuel in a decades time.

Dear Sir,

LNG prices do not follow crude prices closely. This is because these are two different markets and LNG is not produced from crude but from natural gas.

I am now retired and since most of the industry data, such as Platt's LNG Price Assessment are not accessible unless paid for. (All these were available to me when I was working). Only relevant literature I could find was:

"Prices for LNG in Japan hit $10.069 per million Btu (MMBtu) on December 15, having fallen from around $16 at the start of 2014. As LNG contract prices are typically based on the average of the preceding six to nine months, it will be mid-2015 before suppliers feel the full effects of lower oil prices on their cash flow.

The LNG price decline came in two stages. Prices dropped in the summer, as new supply from ExxonMobil’s Papua New Guinea (PNG LNG) project hit the market. Prices then fell further as Brent oil dropped from $110/bbl in August, to below $60/bbl in December.

When Brent crude sells for $100, oil-linked natural gas contracts typically translate to around $14 MMBtu, giving U.S. LNG a big price advantage. This advantage disappears as crude prices fall, with crude at $60 LNG indexes to $8.40 per MMBtu. U.S. LNG producers have been targeting prices of $11 or $12 per MMBtu to be profitable after absorbing the costs of buying the gas, liquefying it, shipping it around the globe and regasifying it."

Full articl at:
https://breakingenergy.com/2015/01/21/impact-of-falling-oil-prices-on-lng/


For period 2016 /2017 :

"Asia spot LNG prices have continued to slide lower in recent weeks, falling below the levels seen in December 2016 and 2017 despite most of the current year having been stronger than the two before.

The ICIS front-month East Asia Index plummeted from $10.850/MMBtu on 16 November by more than two dollars to $8.525/MMBtu on 14 December. It’s now down almost four dollars from the year-high of $12.25/MMBtu seen in mid-September. The EAX represents the value of deliveries to Japan, South Korea, China and Taiwan.

High temperatures had brought a price spike in June 2018 as they boosted air-conditioning demand in Japan. Prices were again strong in September/October as China prepared early for winter, filling up its storage tanks in an attempt to avoid a repeat of the strong prices brought about by the country’s unexpected surge in demand the previous winter. But those high inventory levels have been met by an unusually mild start to winter in the east Asia region, sending prices tumbling lower.

Full article link:

https://www.icis.com/energy-connections/2018/12/asia-spot-lng-drops-below-2017-and-2016-levels/


You would note that LNG prices in the Asian region were hovering around $8 to 9 per mm Btu during that period. Both Pakistan's & Indian term prices are generally in line. Traditionally the Industry relates the LNG term prices to crudes prices because the total volume of trade in crude oil is far greater than the LNG volume, which to my knowledge is less than 140-million tons per annum, hence less vulnerable to manipulation.

I think this topic has now been discussed to the nth degree. I repeat my assertion that I do not believe that any 'Hanky panky' was involved. I have never met the guy nor have had any relations with him ever. However. those who continue to believe that Shahid Khaqan Abbasi skimmed off billions of rupees in this contract, they are welcome to go on doing so. No skin off my back.

I have nothing else to say on this subject.

 

[The Accountant]

Dear Sir,

LNG prices do not follow crude prices closely. This is because these are two different markets and LNG is not produced from crude but from natural gas.

I am now retired and since most of the industry data, such as Platt's LNG Price Assessment are not accessible unless paid for. (All these were available to me when I was working). Only relevant literature I could find was:

"Prices for LNG in Japan hit $10.069 per million Btu (MMBtu) on December 15, having fallen from around $16 at the start of 2014. As LNG contract prices are typically based on the average of the preceding six to nine months, it will be mid-2015 before suppliers feel the full effects of lower oil prices on their cash flow.

The LNG price decline came in two stages. Prices dropped in the summer, as new supply from ExxonMobil’s Papua New Guinea (PNG LNG) project hit the market. Prices then fell further as Brent oil dropped from $110/bbl in August, to below $60/bbl in December.

When Brent crude sells for $100, oil-linked natural gas contracts typically translate to around $14 MMBtu, giving U.S. LNG a big price advantage. This advantage disappears as crude prices fall, with crude at $60 LNG indexes to $8.40 per MMBtu. U.S. LNG producers have been targeting prices of $11 or $12 per MMBtu to be profitable after absorbing the costs of buying the gas, liquefying it, shipping it around the globe and regasifying it."

Full articl at:
https://breakingenergy.com/2015/01/21/impact-of-falling-oil-prices-on-lng/


For period 2016 /2017 :

"Asia spot LNG prices have continued to slide lower in recent weeks, falling below the levels seen in December 2016 and 2017 despite most of the current year having been stronger than the two before.

The ICIS front-month East Asia Index plummeted from $10.850/MMBtu on 16 November by more than two dollars to $8.525/MMBtu on 14 December. It’s now down almost four dollars from the year-high of $12.25/MMBtu seen in mid-September. The EAX represents the value of deliveries to Japan, South Korea, China and Taiwan.

High temperatures had brought a price spike in June 2018 as they boosted air-conditioning demand in Japan. Prices were again strong in September/October as China prepared early for winter, filling up its storage tanks in an attempt to avoid a repeat of the strong prices brought about by the country’s unexpected surge in demand the previous winter. But those high inventory levels have been met by an unusually mild start to winter in the east Asia region, sending prices tumbling lower.

Full article link:

https://www.icis.com/energy-connections/2018/12/asia-spot-lng-drops-below-2017-and-2016-levels/


You would note that LNG prices in the Asian region were hovering around $8 to 9 per mm Btu during that period. Both Pakistan's & Indian term prices are generally in line. Traditionally the Industry relates the LNG term prices to crudes prices because the total volume of trade in crude oil is far greater than the LNG volume, which to my knowledge is less than 140-million tons per annum, hence less vulnerable to manipulation.

I think this topic has now been discussed to the nth degree. I repeat my assertion that I do not believe that any 'Hanky panky' was involved. I have never met the guy nor have had any relations with him ever. However. those who continue to believe that Shahid Khaqan Abbasi skimmed off billions of rupees in this contract, they are welcome to go on doing so. No skin off my back.

I have nothing else to say on this subject.

Thanks for sharing so much details. Will try to get some data for furthee discussions

 

[ejaz007]

No one expect patwaris to believe in truth and logic.

When chaarsi's have no logic or argument they turn to their usual upbringing.

This forum's quality has been severely degraded by PTI supporters.

who do you believe then? mian swine or kakki bassi. i pity the quim that adores crooks and thieves who fingers them and they deserve it.

That the best you can write.

 

[Defense Reader]

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 !

If you understand punjabi then this is the most realistic answer for current regime " oton oton rola payi jaow wichun wichun khai jaow" and if you never find any thing for your self then blame others as usual.

 

[Yaseen1]

i think present govt should cancel this contract immediately,I have heard reports that they took measures for ending this contract and renegotiated terms with qatar regarding Lng,it is not difficult for us if we use our diplomacy and foreign office in effective manner as Qatar also has good relations with turkey and also is our friendly nation.Blaming and mourning on past acts is good for political point scoring but will not solve problem unless we not take measures to solve issues at present

 

[ejaz007]

"On February 5, Reuters reported: “India’s Reliance Industries purchased an LNG cargo via tender on Wednesday at $2.80 per mmBtu.” On February 11, The News reported: “The new price of RLNG for SSGC system has been fixed at $11.1943 per mmBtu, which was $10.4602 during the last month.” I really do not understand the huge price differential."

https://www.thenews.com.pk/print/614589-the-real-disease

Perhaps quantity has a factor. Pakistan imports 3.75 million tons per year while India 7.5 million tons.

Also I am not sure about the price of USD 2.8/MMBTU. I heard it was around USD 8.5-9/MMBTU.

For India and Pakistan cheapest and shortest route still is Qatar. I doubt a supplier sourcing LNG from USA or Australia would be able to match price quoted by Qatar.

Remember IK visited Qatar to renegotiate the price and then became quite. Perhaps he was told to look for alternative and those were even more expensive then the Qatar LNG price.

 

[AZ1]

When chaarsi's have no logic or argument they turn to their usual upbringing.

This forum's quality has been severely degraded by PTI supporters.



That the best you can write.

Charsi still pay taxes its ur kind who always cry and looking for free chars. Why in shock now and behave like you are supporter of IK. Go ask your master why they made the deal rather than looking toward this govt.
For one qatari letter, they stroke a great deal and ofcourse a gift to this nation.

 

[Zulfiqar]

Dear Sir,

LNG prices do not follow crude prices closely. This is because these are two different markets and LNG is not produced from crude but from natural gas.

I am now retired and since most of the industry data, such as Platt's LNG Price Assessment are not accessible unless paid for. (All these were available to me when I was working). Only relevant literature I could find was:

"Prices for LNG in Japan hit $10.069 per million Btu (MMBtu) on December 15, having fallen from around $16 at the start of 2014. As LNG contract prices are typically based on the average of the preceding six to nine months, it will be mid-2015 before suppliers feel the full effects of lower oil prices on their cash flow.

The LNG price decline came in two stages. Prices dropped in the summer, as new supply from ExxonMobil’s Papua New Guinea (PNG LNG) project hit the market. Prices then fell further as Brent oil dropped from $110/bbl in August, to below $60/bbl in December.

When Brent crude sells for $100, oil-linked natural gas contracts typically translate to around $14 MMBtu, giving U.S. LNG a big price advantage. This advantage disappears as crude prices fall, with crude at $60 LNG indexes to $8.40 per MMBtu. U.S. LNG producers have been targeting prices of $11 or $12 per MMBtu to be profitable after absorbing the costs of buying the gas, liquefying it, shipping it around the globe and regasifying it."

Full articl at:
https://breakingenergy.com/2015/01/21/impact-of-falling-oil-prices-on-lng/


For period 2016 /2017 :

"Asia spot LNG prices have continued to slide lower in recent weeks, falling below the levels seen in December 2016 and 2017 despite most of the current year having been stronger than the two before.

The ICIS front-month East Asia Index plummeted from $10.850/MMBtu on 16 November by more than two dollars to $8.525/MMBtu on 14 December. It’s now down almost four dollars from the year-high of $12.25/MMBtu seen in mid-September. The EAX represents the value of deliveries to Japan, South Korea, China and Taiwan.

High temperatures had brought a price spike in June 2018 as they boosted air-conditioning demand in Japan. Prices were again strong in September/October as China prepared early for winter, filling up its storage tanks in an attempt to avoid a repeat of the strong prices brought about by the country’s unexpected surge in demand the previous winter. But those high inventory levels have been met by an unusually mild start to winter in the east Asia region, sending prices tumbling lower.

Full article link:

https://www.icis.com/energy-connections/2018/12/asia-spot-lng-drops-below-2017-and-2016-levels/


You would note that LNG prices in the Asian region were hovering around $8 to 9 per mm Btu during that period. Both Pakistan's & Indian term prices are generally in line. Traditionally the Industry relates the LNG term prices to crudes prices because the total volume of trade in crude oil is far greater than the LNG volume, which to my knowledge is less than 140-million tons per annum, hence less vulnerable to manipulation.

I think this topic has now been discussed to the nth degree. I repeat my assertion that I do not believe that any 'Hanky panky' was involved. I have never met the guy nor have had any relations with him ever. However. those who continue to believe that Shahid Khaqan Abbasi skimmed off billions of rupees in this contract, they are welcome to go on doing so. No skin off my back.

I have nothing else to say on this subject.

Niaz sb, based on your work in the industry can you recommend some books w.r.t Oil & Gas especially financial aspect of Oil & Gas.

 

[ejaz007]

Charsi still pay taxes its ur kind who always cry and looking for free chars. Why in shock now and behave like you are supporter of IK. Go ask your master why they made the deal rather than looking toward this govt.
For one qatari letter, they stroke a great deal and ofcourse a gift to this nation.

Your post validates my point that Chaarsi's do not know what they are typing or saying.

From where did you get the notion that I support PTI or any other prty.

PTI is more than welcome to terminate the contract. What is stopping them.

An example of Chaarsi's in government:

12b lost as crucial LNG shipment cancelled

https://tribune.com.pk/story/1862506/2-12b-lost-crucial-lng-shipment-cancelled/

 

[AZ1]

Your post validates my point that Chaarsi's do not know what they are typing or saying.

From where did you get the notion that I support PTI or any other prty.

PTI is more than welcome to terminate the contract. What is stopping them.

Exactly I know what you do here so now stop asking this Govt to do this and that for you. Party you supported did great favor to the nation. You don't support this govt, you should wait for your nawaz to come back and rule again then demand. IK should do this and that keep that crap to yourself and start another negative thread for IK thank you for your valuable time to this forum.