Saudi Aramco offers to sell Pakistan LNG cargoes: Bloomberg

[BHarwana]

Saudi Aramco, the world’s largest oil company, is offering to sell LNG cargoes on a short-term basis to Pakistan, says Nadeem Babar, the head of PM Imran Khan’s task force on energy, Bloomberg reported.

Aramco will send a delegation to Pakistan this week to discuss the proposal, he said.

Aramco, the largest producer of crude oil, doesn’t produce LNG, but in January it hired an employee from a Singapore-based company to develop its LNG business.

https://www.samaa.tv/news/2019/04/saudi-aramco-offers-to-sell-pakistan-lng-cargoes-bloomberg/

 

[Clutch]

Saudi Aramco team arrives in Pakistan to discuss first ever LNG sale

An Aramco employee walks near an oil tank at Saudi Aramco’s Ras Tanura oil refinery and oil terminal in Saudi Arabia. The company’s delegation arrived in Islamabad on Thursday to discuss plans by the world’s largest producer of crude oil to sell liquefied natural gas (LNG) to Pakistan. (Reuters)

KARACHI: A Saudi Aramco delegation arrived in Islamabad on Thursday to discuss plans by the world’s largest producer of crude oil to sell liquefied natural gas (LNG), Nadeem Baber, Chairman of Prime Minister’s task force on energy reforms, told Arab News.
“The delegation is here and they are discussing with the government officials. Aramco intends to start LNG trading. They are interested in supply of short term cargoes,” said Baber.
Earlier, Mahmood Moulvi, adviser at the maritime affairs ministry, said on Wednesday that Saudi Aramco had expressed interest in selling LNG to Pakistan and also expressed interest in setting up a state-of-the-art LNG terminal, most likely in collaboration with Exxon Mobil.
“The process of awarding tender for the LNG terminal will be initiated within a month,” Moulvi said.
Aramco currently does not produce any LNG, but in January it hired an employee from Singapore’s Pavilion Energy Pte Ltd. to develop its LNG business. Its sale to Pakistan, if it materializes, will be the first LNG sale for the world’s largest producer of crude oil.
Sher Afgan Khan, a spokesman for the ministry of energy, had also confirmed that Aramco was interested in a refinery as well as LNG imports.
LNG is the fastest-growing hydrocarbon with a growth rate of 4 percent per annum. Global LNG demand is expected to exceed 500 million tons per annum by 2035, up from nearly 300 million tons per annum in 2017.
Pakistan also intends exploring its nearly 100 trillion cubic feet of untouched shale gas reserves for which a policy in on the anvil. “Our target is to finalize the policy in the next five to six months and invite tenders for exploration. Saudi delegation had previously expressed interest in shale gas exploration,” Baber informed, adding that the incentives would be decided once the policy was finalized.
Pakistan’s domestic gas output has plateaued in the last five years, falling to 1.46 trillion cubic feet in 2017-18, from 1.51 trillion cubic feet in 2012-2013, according to an annual report from the Petroleum Ministry.
This has led to severe gas shortages as Pakistan’s population, now at 208 million people, has risen sharply over the same period, driving fuel demand from industries and new power plants higher.
Gas demand was estimated at 6.9 billion cubic feet per day for 2017-18, according to Pakistan’s Oil & Gas Regulatory Authority (OGRA) --nearly 3 billion cubic feet more than daily output.

Pakistan expects to hit huge oil and gas reserves from the offshore drilling which, if materialized, would be enough for 30 years. However, results from the drilling site are yet awaited.

“Something definite can only be said once the results come in. Drilling continues as of now and I think that within eight to 10 days, the data analysis will also begin. The process was delayed due to security reasons but the situation is normal now,” said the head of PM’s task force on energy.
He added that the first indications are expected to start flowing in within the next two weeks. However, it is difficult to say anything until the reports based on data analysis came in from ENI and Exxon Mobil. “But they are hopeful,” said Baber.

 

[Zee-shaun]

Saudi Aramco team in Pakistan for talks on first LNG deals

Parvez JabriApril 12, 2019

ISLAMABAD: A delegation from the world’s largest crude oil producer, Saudi Aramco, is in Pakistan for discussions on what would be its first ever liquefied natural gas (LNG) shipments, a top Pakistani official said on Friday.

Pakistan is facing an energy crisis with repeated power blackouts and gas supply outages that led to the sacking of the heads of two of its main gas distribution utilities in January.

The Saudi delegation, which arrived on Thursday, was discussing LNG supplies, Nadeem Babar, the head of Prime Minister Imran Khan’s task force on energy reforms, told Reuters.

“They’re discussing LNG sales. They’re entering this business,” he said. “Aramco is starting an LNG trade operation, and we are in discussion over all aspects, including terms and quantity, etc.”

Aramco doesn’t currently produce LNG, and any such sale would be first of its kind. Aramco didn’t immediately respond to a request for comment.

Saudi Aramco Chief Executive Amin Nasser said in February that Saudi Arabia aims to export 3 billion cubic feet per day of gas before 2030 via both pipelines and LNG tankers.

Pakistan’s demand for LNG could more than triple in the next three to five years, the chief executive of Pakistan LNG said last month, adding that Islamabad was expected to negotiate a few more long-term contracts to import LNG into the country.

Last year, Pakistan imported nearly 7 tonnes of LNG, data from Refinitiv Eikon shows. This year, that could grow to as high as 15 million tonnes and to up to 25 million to 30 million tonnes over the next three to five years, said Adnan Gilani, managing director and chief executive of Pakistan LNG.

Pakistan LNG is a state-owned company that buys LNG from the international market to supply to the domestic market.

Pakistan’s two import terminals have a regas capacity of 1.2 billion to 1.3 billion cubic feet of gas per day, or about 9 million to 10 million tonnes of LNG a year, according to Gilani’s presentation at the LNGA 2019 conference in Singapore.

https://www.brecorder.com/2019/04/1...eam-in-pakistan-for-talks-on-first-lng-deals/

 

[jupiter2007]

They want to take away business from Qatar.

 

[Shahzaz ud din]

Saudi Aramco team in Pakistan for talks on LNG deals
By
Agencies
-
April 13, 2019
0
144

ISLAMABAD: A delegation from the world’s largest crude oil producer, Saudi Aramco, is in Pakistan for discussions on what would be its first-ever liquefied natural gas (LNG) shipments, a top Pakistani official said.

The country is facing an energy crisis with repeated power blackouts and gas supply outages that led to the sacking of the heads of two of its main gas distribution utilities in January.

The Saudi delegation, which arrived on Thursday, was discussing LNG supplies, Nadeem Babar, the head of Prime Minister Imran Khan’s task force on energy reforms, stated.

“They’re discussing LNG sales. They’re entering this business,” he said. “Aramco is starting an LNG trade operation, and we are in discussion over all aspects, including terms and quantity, etc.”

Aramco doesn’t currently produce LNG, and any such sale would be first of its kind. Aramco didn’t immediately respond to a request for comment.

Saudi Aramco Chief Executive Amin Nasser said in February that Saudi Arabia aims to export 3 billion cubic feet per day of gas before 2030 via both pipelines and LNG tankers.

Pakistan’s demand for LNG could more than triple in the next three to five years, the chief executive of Pakistan LNG said last month, adding that Islamabad was expected to negotiate a few more long-term contracts to import LNG into the country.

Last year, Pakistan imported nearly seven tonnes of LNG, data from Refinitiv Eikon shows. This year, that could grow to as high as 15 million tonnes and to up to 25 million to 30 million tonnes over the next three to five years, said Adnan Gilani, managing director and chief executive of Pakistan LNG.

Pakistan LNG is a state-owned company that buys LNG from the international market to supply to the domestic market.

Pakistan’s two import terminals have a regas capacity of 1.2 billion to 1.3 billion cubic feet of gas per day, or about 9 million to 10 million tonnes of LNG a year, according to Gilani’s presentation at the LNGA 2019 conference in Singapore.

 

[Path-Finder]

They want to take away business from Qatar.

that means haram kakkai bassi along with the cretin in qatar and his boss haram fat tooi are out of a MASSIVE commission.

 

[Mamadouso]

Do Saudi have gas? I thought 90% of their reserve was oil?

 

[niaz]

Do Saudi have gas? I thought 90% of their reserve was oil?

Saudi Arabia has natural gas. I am aware that a lot of gas is produced as by-product associated with the crude oil production from their oilfields at Dhahran on the Arab Gulf coast. Initially, most of this was flared, but it is now gathered and piped to SABIC for petrochemical manufacture. This has made SABIC with annual sales of about $38-billion, the largest Petrochemical Company and the 4th largest Chemical Company of the world.

Understand total Saudi Arabia has more than 200-tcf gas reserves, even though this is only about 20% of Qatar, it is still substantial. However, thus far Saudi Arabia has no LNG production.

Following the examples of all the large oil companies; Saudi Aramco has also recently established a ‘Trading’ arm, hence they could but in the LNG’ Spot market’ and supply to Pakistan. This move is clearly intended to muscle into the LNG Market which has been dominated by Qatar for the last decade

 

[Fledgingwings]

Let it come then?

 

[Mamadouso]

Saudi Arabia has natural gas. I am aware that a lot of gas is produced as by-product associated with the crude oil production from their oilfields at Dhahran on the Arab Gulf coast. Initially, most of this was flared, but it is now gathered and piped to SABIC for petrochemical manufacture. This has made SABIC with annual sales of about $38-billion, the largest Petrochemical Company and the 4th largest Chemical Company of the world.

Understand total Saudi Arabia has more than 200-tcf gas reserves, even though this is only about 20% of Qatar, it is still substantial. However, thus far Saudi Arabia has no LNG production.

Following the examples of all the large oil companies; Saudi Aramco has also recently established a ‘Trading’ arm, hence they could but in the LNG’ Spot market’ and supply to Pakistan. This move is clearly intended to muscle into the LNG Market which has been dominated by Qatar for the last decade

That is good, more competition and this could mean if Pakistan, Turkey etc play their cards right they can make huge savings by sourcing cheaper supply.