Pakistan Close to Deal With Qatar Over LNG for Power Plants

[haviZsultan]

The key figures in the article are these:

22.5 billion dollars or more (here more means the price is going to go up when the deal is actually signed) for 15 years to import 3 million tons of LNG.

Each ton of LNG is about 50 MMBTU. So in effect under this deal, the price of gas is 10 dollars per MMBTU. This is the price of LNG, the transportation cost by LNG tankers and the re-gasification cost will add another 2 or 3 dollars per MMBTU at the very minimum to the final cost. If the oil goes to 100 you will end up paying over 20 dollars per MMBTU excluding transportation and re-gasification costs. And since the deal is going to be for 15 years you will face international court of arbitration and heavy fines if you try to abandon it for example 3 years down the road.

Compare it with IP, which was set at 11 dollars per MMBTU when oil was at 100 dollars a barrel including the cost of pipeline transport. At 40 dollars a barrel of oil, the IP gas would have cost 4.4 dollars per MMBTU including the cost of transport.

This Qatar LNG gas will be about 3 times more expensive than IP.

I agree. We should be importing gas from Iran. Another shot in the face of Pakistani independence. Everyone is afraid of terrorist America that we can't think what is in our own interests. We can't even fight a small war and kill those talibani piglets without American intrusion.

 

[OTTOMAN]

Gas pipeline from Iran is the best solution compared LNG that is more expensive. LNG's relatively high cost of production and the need to store it in expensive cryogenic tanks have hindered widespread commercial use. Who is getting fat contracts and commissions to install LNG plant in Karachi ? Any bomb explosion at LNG plant will be extremely deadly.

Buying GAS from Iran is like selling Pakistan. Unless they sell you at same price as Qatar gas.
In any case power plants on Gas is equally bad idea.... they will be useless in 10 years time, its just a temporary solution.

I agree. We should be importing gas from Iran. Another shot in the face of Pakistani independence. Everyone is afraid of terrorist America that we can't think what is in our own interests. We can't even fight a small war and kill those talibani piglets without American intrusion.

what is the problem with Turkmeni gas? Iran sell his Gas at the price of gold.
USA is a no issue, they both wine and dine together in Iraq and Syria.

 

[ziaulislam]

Could you explain what is the source of the rate 12 $per mmbtu ? do you have a contract copy or it is just an imagination while taking a half nap in chilly winters ?

i hate it when guys cant use google! please learn how to use google. hopefully you do know it exists right!!!!!!!!!!!!!!

Pak study says Iranian gas grossly overpriced | (by SDBP )
Pakistan Wants to Accelerate Iran Natural Gas Pipeline | The Diplomat
Lobbying: US lures Pakistan with cheaper gas than Iran – The Express Tribune
Iran gas pipeline not in favour of Pakistan: report - Newspaper - DAWN.COM
all of these are official sources quoted either by SDPI or oil ministry

if you read articles you will understand that prices are being quoted from 12-15$ that because it will 12$ only if oil is at 100

"Iranian gas will cost $13/MMBtu and Turkmen gas $11/MMBtu, if the crude oil price is $100/barrel," the official said, adding that Pakistan will sign a gas sales and purchase agreement with Turkmenistan in the upcoming May talks
Earlier reports have indicated that the pricing formula will be based 60%-80% on Brent crude value, with the remainder to be determined by the Platts Singapore assessments for 380 CST HSFO, 180 CST HSFO and 0.5% sulfur gasoil. The ministry official said April 20 that gas imported from Turkmenistan would work out cheaper than gas imported from Iran based on the pricing formula that was under discussion.



Pak study says Iranian gas grossly overpriced |

I agree. We should be importing gas from Iran. Another shot in the face of Pakistani independence. Everyone is afraid of terrorist America that we can't think what is in our own interests. We can't even fight a small war and kill those talibani piglets without American intrusion.

iran knows sooner or later we will have to buy from them so why sell it cheaper if they can sell it at a hefty price

 

[OTTOMAN]

i hate it when guys cant use google! please learn how to use google. hopefully you do know it exists right!!!!!!!!!!!!!!

Pak study says Iranian gas grossly overpriced | (by SDBP )
Pakistan Wants to Accelerate Iran Natural Gas Pipeline | The Diplomat
Lobbying: US lures Pakistan with cheaper gas than Iran – The Express Tribune
Iran gas pipeline not in favour of Pakistan: report - Newspaper - DAWN.COM
all of these are official sources quoted either by SDPI or oil ministry

if you read articles you will understand that prices are being quoted from 12-15$ that because it will 12$ only if oil is at 100

"Iranian gas will cost $13/MMBtu and Turkmen gas $11/MMBtu, if the crude oil price is $100/barrel," the official said, adding that Pakistan will sign a gas sales and purchase agreement with Turkmenistan in the upcoming May talks
Earlier reports have indicated that the pricing formula will be based 60%-80% on Brent crude value, with the remainder to be determined by the Platts Singapore assessments for 380 CST HSFO, 180 CST HSFO and 0.5% sulfur gasoil. The ministry official said April 20 that gas imported from Turkmenistan would work out cheaper than gas imported from Iran based on the pricing formula that was under discussion.



Pak study says Iranian gas grossly overpriced |




iran knows sooner or later we will have to buy from them so why sell it cheaper if they can sell it at a hefty price

OOPS... some one got pissed for the blatant falsification and went on to kill the bill !

 

[ziaulislam]

OOPS... some one got pissed for the blatant falsification and went on to kill the bill !

ok i accept the fact that all of Pakistani oil ministry and official were just plain lying, Iran is ready to offer us free of cost gas while china free of cost electricity. its all because of our damn politicians. aren't we already getting free oil from Saudis

 

[OTTOMAN]

ok i accept the fact that all of Pakistani oil ministry and official were just plain lying, Iran is ready to offer us free of cost gas while china free of cost electricity. its all because of our damn politicians. aren't we already getting free oil from Saudis

no dear i was being sarcastic.... you did a good job.

making electricity from gas bought @ 13+$ is even more stupid. especially when we yet have to erect the gas turbines !

 

[Sugarcane]

This will save Rs300 million for Pakistan

Oil prices became half and still it's benefit of just $3 million per year?

 

[OTTOMAN]

“We have an agreement with Iran that we will buy gas for $15/ MMBTU. However, Turkmenistan is supplying gas to Japan at a rate of $4/ MMBTU,”

now if we are buying @ $11 than rest of the $ 7 is commission of politicians, i bet Imran Khan is getting his fare share as well.

 

[ziaulislam]

no dear i was being sarcastic.... you did a good job.

making electricity from gas bought @ 13+$ is even more stupid. especially when we yet have to erect the gas turbines !

i was being sarcastic to

“We have an agreement with Iran that we will buy gas for $15/ MMBTU. However, Turkmenistan is supplying gas to Japan at a rate of $4/ MMBTU,”

now if we are buying @ $11 than rest of the $ 7 is commission of politicians, i bet Imran Khan is getting his fare share as well.

well the reason those countries are buying cheaper are because they are in long term contract with those countries. for example its possible that japan had the contract in early 2000s when gas was way cheaper.
point is that now the spot prices are 6-8$ so doing deal thats expensive than that is utter stupidity. because most experts dont see oil prices reaching 100$ in next 5-10 years. but qatar is pushing alot with boths their influence and $$$ TO GET A HEFTY TO PRICE

 

[Viper0011.]

Kickbacks happen all over the world, so let's get over it. Let's build the economy and then we can come up with more rules and processes to catch corruption.

I like reading your posts. The right way of thinking. You can't run without learning to walk. If there is kickbacks and all, so be it, let's learn to walk first, grow the economy, bring millions of more jobs and billions of investments (and kick backs are wrong by all means but knowing no other choice left, and the Pakistani society getting worst, I'd allow put up with it for sometime).
But millions of ordinary people will get more education and will have real lifelong careers with an advancing economy. Millions of more families will have a better life style and the country as a whole will become more modern and economic focus, which will also help curbing down extremism in Pakistan. And as the democratic system becomes more mature and stable, trust me, new rules will be implemented and the system will start to clean itself through peaceful processes. Beauty of the democracy. Let the country move forward towards growth. Seems like certain people on here don't want the dark times to ever be over. You have to spend some to gain some at times. There is no political system on the entire planet that doesn't have some form of kickbacks or favors. Its just part of humans. You just have to minimize it, you can NEVER stop it entirely.