Russia ready to offer coal, not LNG

[CrazyZ]

ISLAMABAD: Russia has reportedly declined to sell Liquefied Natural Gas (LNG) to Pakistan on short notice but is ready to offer coal, well informed sources in Ministry of Energy (Petroleum Division) told Business Recorder.

Pakistan’s Minister of State for Petroleum wrote a letter to Russian Minister for Energy last month and showed an interest in purchase of LNG from Russia ostensibly to meet energy requirements in winter months. Recently, Pakistan ambassador to Russia, Shafqat Ali Khan met with the Russian Minister for Energy to handover the letter of October 11, 2022 written by Minister of State for Petroleum on the subject of procurement of LNG from Russia.

In response, the Russian side said LNG contracts were made on a long-term basis and arranging them at short notice was difficult, however, they would positively consider Pakistan’s request, the sources added.

In 2020, Russia held proven reserves of 37.4 trillion cubic meters of natural gas - up from 34.1 cubic meters recorded a decade ago.

Referring to the discussion between Prime Minister Shehbaz Sharif and Russian President Vladimir Vladimirovich Putin, in their meeting in Samarkand on September 15, the Russian Energy Minister inquired if Pakistan’s request for procurement of coal from Russia still stands.

According to the Ministry of Natural Resources, Russia’s coal reserves are located within 22 coal basins and 146 separate deposits. More than half of the total reserves are brown coal - 146 billion tons. Bituminous coal accounts for 120.4 billion tons, of which 50.1 billion tons are suitable for coking.

The sources further stated that Russian Embassy in Islamabad in a letter on October 28, recommended that in the 8th session of the Russian-Pakistan Intergovernmental Commission (IGC) on Trade, Economic, Scientific and Technical Cooperation to be held on January 18-20, 2023 in Islamabad the issue related to energy sector would come under discussion.

The eight session of IGC will be co-chaired by Sardar Ayaz Sadiq from Pakistan’s side and Nikolay Shulginov, Minister for Energy from Russian side. In this regard, inter-ministerial meeting (IMM) regarding follow up on implementation of the decision taken during seventh session of IGC under the chairmanship of Additional Secretary-1, Ministry of Economic Affairs is scheduled to be held tomorrow (November 16).

Pakistan is trying to strike a deal with Russia for import of oil but still nothing concrete has come out from interactions between the two countries. Pakistan is also importing wheat from Russia through Trading Corporation of Pakistan (TCP) on G2G basis.

During the last IGC meeting, Russians had informed the Pakistani side about the interest of the Russian company Digital Industrial Platform LLC (a joint venture of Gazprom Neft PJSC and Zyfra LLC) in developing fruitful cooperation with Pakistani oil & gas companies including but not limited to OGDCL, PSO, SNGPL and SSGCL in implementing and jointly developing and marketing the industrial digital solutions for oil & gas sector. The two sides also supported an interest of Habib Rafiq Engineering (Pvt.) LTD and its subsidiaries or associates to cooperate with Digital Industrial Platform LLC (a joint venture of Gazprom Neft PJSC and Zyfra LLC) in jointly exploring the opportunities for developing, marketing and implementing the industrial digital solutions for oil & gas sector in the Pakistani market on open industrial IoT platform.

The Commission had noted that PSO also floats tenders for import of LNG from time to time and is looking forward to the participation of Russian companies in future tenders.

The Commission noted the proposal of Pakistani side to explore possibilities for investment in Pakistan by Russian Companies in: (i) setting up of refineries; (ii) existing refineries upgrade; (iii) virtual LNG pipelines; (iv) onshore storage of LNG; (v) strategic oil storages; and (vi) strategic gas storages (under this point the Pakistan side will consider the proposal from the Russian side to develop underground gas storages in continuation of the “Pakistan Stream” project).

Russia ready to offer coal, not LNG

* Pakistan is trying to strike a deal with Russia for import of oil

www.brecorder.com

 

[Maula Jatt]

we already have coal we need LNG

 

[SoulSpokesman]

@CrazyZ

Cant blame the Russians. If you guys are supplying weapons to Ukraine, how do you expect them to supply you gas.

Regards

 

[-blitzkrieg-]

@CrazyZ

Cant blame the Russians. If you guys are supplying weapons to Ukraine, how do you expect them to supply you gas.

Regards

I cant believe we have so fumb folks here.Russia sells all its military equipment to India. Russia has no such expectations as to what and where we sell. That's purely business.

 

[SoulSpokesman]

@-blitzkrieg-

Fair point. Pakistan is free to sell (or not sell) whatever and wherever. Same with Russia.

Regards

 

[Mav3rick]

@-blitzkrieg-

Fair point. Pakistan is free to sell (or not sell) whatever and wherever. Same with Russia.

Regards

If Russia is willing to sell anything to Pakistan then it is a fact that whatever it is not selling, is because Russia is not able to sell. In this case, Russia already has more buyers for its LNG than it can produce and hence the decline.

 

[Trango Towers]

@CrazyZ

Cant blame the Russians. If you guys are supplying weapons to Ukraine, how do you expect them to supply you gas.

Regards

Same as they supply gas to Germany and Europe

 

[farok84]

In response, the Russian side said LNG contracts were made on a long-term basis and arranging them at short notice was difficult, however, they would positively consider Pakistan’s request, the sources added.

Hi,

They want long term commitments, that is a long term deal expanding 10-15years. They are not interested in spot sales.

 

[S10]

You can't just buy LNG in large quantities on short notice. Russia likely has hit a production cap and need to develop expanded capacity to service new customers.

It's as ridiculous as Americans demanding Saudi suddenly produce 20% more oil in a week. You need to plan months ahead in advance for this kind of stuff.

 

[SoulSpokesman]

@Trango Towers

Same as they supply gas to Germany and Europe

Supplying gas to them is easy- a pipeline is in place. Plus, they do large volumes and get paid without fail.

Now why would they take the troubles to supply to Pak by ships, when volumes are relatively small and opening LCs could be a hassle. And on top of that Pak is supplying weapons to the enemy.

Regards

 

[Mav3rick]

You can't just buy LNG in large quantities on short notice. Russia likely has hit a production cap and need to develop expanded capacity to service new customers.

It's as ridiculous as Americans demanding Saudi suddenly produce 20% more oil in a week. You need to plan months ahead in advance for this kind of stuff.

Saudis actually have the capacity to produce more oil as they are not working at capacity due to suppressed global demand. The US demand was quite fair and in the larger, global, public interest.

The Saudis, however, consider Oil a commodity and want to sell it at the highest possible rate.

 

[S10]

Saudis actually have the capacity to produce more oil as they are not working at capacity due to suppressed global demand. The US demand was quite fair and in the larger, global, public interest.

The Saudis, however, consider Oil a commodity and want to sell it at the highest possible rate.

Saudi Arabia has a stable max production rate of 10 million barrels a day. It's actually there right now. They can get up to 12 million barrels, but only for a very short amount of time due to stress on existing infrastructure and manpower.

Explainer: How much extra oil can Saudi Arabia pump?

U.S. President Joe Biden's visit in recent days to top oil exporter Saudi Arabia ended without any announcements that the kingdom would raise oil production to help lower fuel prices which are spurring the highest U.S. inflation in four decades.

www.reuters.com

In essence, Biden was asking Saudis to compensate for his own shitty energy planning.

 

[kingQamaR]

Whoever comes a-knockin’ with ready cash in hand, that's who.

Pakistan is jut basically an unreliable customer for Moscow, it changes its mind to regularly unlike China & india

Coal offered to us as a alternative energy we can have

 

[Mav3rick]

Saudi Arabia has a stable max production rate of 10 million barrels a day. It's actually there right now. They can get up to 12 million barrels, but only for a very short amount of time due to stress on existing infrastructure and manpower.

Explainer: How much extra oil can Saudi Arabia pump?

U.S. President Joe Biden's visit in recent days to top oil exporter Saudi Arabia ended without any announcements that the kingdom would raise oil production to help lower fuel prices which are spurring the highest U.S. inflation in four decades.

www.reuters.com

In essence, Biden was asking Saudis to compensate for his own shitty energy planning.

That 2 million BPD could make a big difference, because it would also lead other OPEC Countries to start producing more.

I wonder why, despite all the tensions on Oil prices, the US still won't offer a deal to Iran as Iranian Crude also has the potential to change the complexion of the Oil game and would effect the prices of Oil.

Whoever comes a-knockin’ with ready cash in hand, that's who.

Pakistan is jut basically an unreliable customer for Moscow, it changes its mind to regularly unlike China & india

Coal offered to us as a alternative energy we can have

I think we already have sufficient quantity of Coal from Afghanistan so don't really need Russian Coal.

 

[SoulSpokesman]

@Mav3rick

I wonder why, despite all the tensions on Oil prices, the US still won't offer a deal to Iran

The US demand was quite fair and in the larger, global, public interest.

You see, your first statement says it all. USA could have easily solved the problem by not sanctioning Venezuela and Iran and keeping their oil out of the market. Under these circumstances you have to agree with @S10 bro when he says "Biden was asking Saudis to compensate for his own shitty energy planning"

Regards