Pakistan is saving 600 million dollars by getting best LNG deal.

[Bashido]

What a crap article and crap logic. Didn't expect this bull shit from the brand as high as Bloomberg ...

1. First of all, they are comparing spot prices of today when fuel is 76 dollars from a 10 years firm contract at the time when oil was dirt cheap and nobody was interested in buying gas except for people like us who has a pipeline network for distribution of gas ...
2. How the hell negotiation between with supplier by getting competitive biddings is a saving? This is a basic principle of purchasing, You take a quote and shortlist the lowest supplier then you further negotiate with them to further reduce the price. This is the very basic method of purchasing.
3. Saving would have been real if there was a similar contract of 10 years firm commitment in 2016 with similar pricing.

The highlighted part is enough to understand from where you are coming. I hope you know how to use google.

 

[niaz]

deleted

What a crap article and crap logic. Didn't expect this bull shit from the brand as high as Bloomberg ...

1. First of all, they are comparing spot prices of today when fuel is 76 dollars from a 10 years firm contract at the time when oil was dirt cheap and nobody was interested in buying gas except for people like us who has a pipeline network for distribution of gas ...
2. How the hell negotiation between with supplier by getting competitive biddings is a saving? This is a basic principle of purchasing, You take a quote and shortlist the lowest supplier then you further negotiate with them to further reduce the price. This is the very basic method of purchasing.
3. Saving would have been real if there was a similar contract of 10 years firm commitment in 2016 with similar pricing.

Honourable Accountant,

Please be clear that no one buys or sells crude, refined products or gas on fixed prices. LNG prices are either linked to the Henry Hub terminal gas prices as quoted on the Nymex or linked to the international crude prices. Pak –Qatar LNG deal is linked to the Brent prices hence the same will increase or decrease with the international market.

For your kind information, Qatar is the largest supplier of LNG in the world.

1. Qatar about 78- million tons per annum
2. Australia about 45- million tons per annum
3. Malaysia about 25-million tons per annum
4. Nigeria about 18.6- million tons per annum.

( you are free to check these figure from the internet.)

Pakistan’s deal was only 2.25-million tons increasing to 3.75 from 2017. Pray tell me, how can you declare that “nobody was interested in buying gas except people like us”?

If this was the case than Shell are the biggest liars because according to their report "LNG trade increased from 100 million tonnes in 2000 to nearly 300 million tonnes in 2017?"

https://www.shell.com/energy-and-innovation/natural-gas/liquefied-natural-gas-lng/lng-outlook.html

For the record, nearly all major countries have a gas pipeline. For example, most of Europe is supplied gas from Russia by a network of pipelines. The Central Asia–China gas pipeline system connects Turkmenistan gas to China domestic grid starting in Xinjiang and gas is transported some 7000 km from Turkmenistan to Shanghai. Assuming that Pakistan is one f the few countries to have a gas pipeline system is highly "Presumptuous" to say the least.

I do however agree that the saving of $600-million is only hypothetical. In actual fact, all that happened was that GOP managed to negotiate a lower price of LNG which resulted in reducing Pakistan dishing out $600-million less FE.