Tag: LNG

  • Govt considering gas import contract with countries including Russia

    Govt considering gas import contract with countries including Russia

    Pakistan is in talks with multiple countries, including Russia, to sign a liquefied natural gas (LNG) import agreement in order to alleviate the country’s ongoing energy supply crisis.

    According to Bloomberg, the Ministry of Energy will go for the ‘most favourable deal’ and is considering government-to-government contracts for importing the gas.

    This action came as Pakistan battles blackouts caused by a fuel crisis caused by long-term suppliers’ failure to deliver shipments. To keep the lights on, the government previously resorted to purchasing LNG on the spot market, incurring debt that endangers worsening inflation on a massive scale.

    The government of Prime Minister (PM) Shehbaz Sharif, which took office on April 11, hopes to capture a new long-term LNG contract to help reduce fuel costs. Long agreements are remarkably affordable than existing spot pricing, while market participants also anticipate that this will provide some relaxation to the government.

  • OCAC warns of petrol supply shortages due to roadblocks

    OCAC warns of petrol supply shortages due to roadblocks

    Oil Companies Advisory Council (OCAC) said that oil marketing companies are supplying fuel to retailers but the deliveries are being slowed owing to road blockages in Punjab’s major cities, which could affect deliveries to filling stations.

    It warned provincial authorities in Punjab that the road blockades have severed connectivity between major cities and neighboring areas, affecting fuel supplies inside the province.

    The Oil Companies Advisory Council affirmed that there are sufficient stockpiles of gasoline products throughout the country, including depots in Punjab.

    It also highlighted fears about the current scenario of roadblocks and the rumoured assumption of minimal stocks spreading on numerous platforms and asked the public to refrain from panic buying. Despite the roadblocks, there are enough stockpiles of petrol and high-speed diesel (HSD) in Punjab, and OMCs are constantly working to restock retail outlets on time.

    OCAC expressed its concerns to the Chief Secretary of Punjab, requesting the local administration’s assistance in ensuring the safe and secure transit of tankers from different depots to different petrol outlets across the province till the scenario stabilizes.

  • Shaukat Tarin denies what he said on national television

    Shaukat Tarin denies what he said on national television

    Advisor to the Prime Minister on Finance Shaukat Tarin admitted to the present gas crisis in the country on Samaa News. However, a day later, Tarin denied his own words and issued a clarification.

    After the show was aired and various news media outlets covered the story,  Energy Minister Hammad Azhar took to Twitter and blamed Geo for manipulating Tarin’s words.

    Hammad tweeted, “What Tarin actually said: -intl prices high due to global shortage. -Noone can predict intl price. – some time ago (July) they had refused a tender (July) but that was for a limited time & wouldn’t have changed things now.”

    “Geo: Gas crises due to not purchasing LNG on time, Fin Min,” added Hammad.

    Shaukat Tarin, after admitting to the gas crisis, took to Twitter and shared his clarification.

    https://twitter.com/shaukat_tarin/status/1463427014711468036

    “News item published in Daily The News titled ‘Govt couldn’t purchase gas Cargoes in time, admits Tarin’ is completely misleading & out of the context,” read the statement.

    “When anchor (Nadeem Malik) asked about the gas shortfall situation in the country, he stated the reasons including the ongoing global LNG shortages which have created fiasco, and it was not in control of anybody.”

    “Government has been buying the gas as required, despite higher international prices. However, he has mentioned there was one tender scrapped in July, but this has nothing to do with winter gas. The Adviser Finance has not mentioned at any point that winter gas shortfalls are due to non-procurement of LNG on time.”

    On November 23, Shaukat Tarin appeared on Samaa News’ programme, ‘Nadeem Malik Live’, and said the very words being denied now.

    “We [government] should have bought the gas cargoes on time as the purchasing time for it was over,” said Tarin.

    Tarin further said nobody knew about the international prices, which he stated were quite high, and that the government should have bought some cargoes earlier.

  • Twitter reacts to PTI’s Hammad Azhar’s challenge to journalist Shahzeb Khanzada

    Twitter reacts to PTI’s Hammad Azhar’s challenge to journalist Shahzeb Khanzada

    Energy Minister of Pakistan, Hammad Azhar took to Twitter to challenge journalist Shahzeb Khanzada to a debate on Liquefied Natural Gas (LNG) and gas.

    Pakistan at present is facing a gas crisis throughout the country. Journalist Shahzab Khanzada, a year ago, had warned that the gas crisis was impending, kept reiterating that the crisis needs immense attention, otherwise the consequences shall be huge.

    Khanzada called the minister on his political news programme ‘Aaj Shahzeb Khanzada Kay Sath’ five times but each time the minister declined despite promising to appear on the show.

    On Friday, Azhar took to Twitter and proposed a challenge.

    “I would like to challenge Shahzeb Khanzada to debate LNG and Gas issues with me moderated by a neutral anchor and with Independent experts. Let the ppl [people] see the facts without persistent interrupting, volume controls, teleprompters etc,” tweeted Azhar.

    His words, “a neutral anchor” and “let the ppl see the facts without persistent interrupting, volume controls, teleprompters” caught a lot of criticism and sparked reactions from the Twitterati.

    Senior Journalist Abbas Nasir wrote, “People are suffering acute gas shortages and this man wants to debate and not accept his abject failures.”

    Adil Shahzeb wrote, “Use of [a] teleprompter is a common practice globally for news shows (for OCs/monologues) to ensure accuracy and manage time (read rate).”

    Anchorperson Muhammad Junaid wrote, “Like PTI’s Favourite Stephen Sackur of BBC was made to sit in a debate moderated by a Neutral Anchor? There is no gas in thousands and thousands of households FIX THAT FIRST MR MINISTER!”

    Journalist Khurram Husain tweeted, “And how will this help plug our winter gas deficit?”

    Aimun, a Twitter user wrote, “Why? Are facts displayed on teleprompters not facts?”

    A Twitter user wrote, “Rather than apologising for causing huge loss to the exchequer n discomfort to the public, this man wants a debate to address the issue.”

    Another Twitter user wrote, “My man’s out here trying to get air time rather than fixing the crisis.”

    Another person tweeted, “The big ‘tu mujhe bahar mil [meet me outside]’ energy.”

    https://twitter.com/chasinggcars/status/1461671639230423045?s=21

    Last week, the government decided to provide gas to the residential sector only three times a day for cooking purposes throughout December to March to minimise gas shortages in Pakistan.

  • PM Khan informed about a serious rift in his cabinet

    PM Khan informed about a serious rift in his cabinet

    Serious disagreements between cabinet members have led to problems at the Ministry of Energy and Petroleum. Prime Minister (PM) Imran Khan has been informed about the current rift, reports The News.

    Important facts were brought to light in Geo News Programme, ‘Aaj Shahzeb Khanzada Kay Sath’. According to reports, the Ministry of Energy and Petroleum is worried about the interference of Asad Umar and Ali Zaidi.

    Asad Umar, Minister of Planning Commission and Special Initiatives heads the Cabinet Committee on Energy (CCOE), and Ali Zaidi, Federal Minister for Maritime Affairs, is its member.

    Reportedly, Special Assistant to PM Khan Tabish Gauhar has lodged a complaint with the premier, pleading that the two cabinet members were interfering in the affairs of the Ministry of Energy.

    Sources say that Hammad and Tabish are in favour of using the full capacity of the existing terminals. However, they are being pressured in the cabinet to sign the Sui South gas pipeline agreement with the new terminals rather than the old Liquified Natural Gas (LNG) terminals.

    Asad Umar gave a tough time to the Energy Ministry for arranging LNG at a higher cost and for the dry docking of the Floating Storage Regasification Unit (FSRU) at the Engro Terminal. 

    The decisions forced the country to face a gas-electricity crisis, subjected the government to the wrath of the Opposition, and triggered a backlash from the masses.

    In the CCOE meeting, Finance Minister Shaukat Tarin, along with Umar and Zaidi, objected to the delayed dry-docking from June 29 to July 5 and why it wasn’t done earlier in 2019. Tarin wanted an inquiry in this regard and ordered Railway Minister Azam Swati to lead the inquiry. Sources have revealed that Tabish was trying to put an end to the inquiry.

    However, Gauhar is currently not attending the CCOE meetings. Sources said that despite protests from Gauhar, the inquiry will go ahead since it is part of the written procedures of the CCOE and has been ratified by the federal government.

    
    
  • Largest gas reserve in 20 years discovered in Balochistan

    Largest gas reserve in 20 years discovered in Balochistan

    Pakistan Petroleum Limited (PPL) has found a huge gas reserve in Margand block of Kalat, Balochistan, 100% of drilling rights of which are owned by the PPL.

    According to the details, PPL had been drilling at Margand X-1 block since June 30, 2019. It carried out Modular Dynamics Testing (MDT) that helps in the detection of gas reserves. PPL further conducted a Drill Stem Test (DST) that revealed that these reserves might potentially exceed 1 trillion cubic feet.

    In comparison, Sui has estimated reserves of 2 trillion cubic feet. This is the first significant discovery of gas reserves in Balochistan since 2000 after which companies such as British Petroleum, Petronas and Niko Resources had been trying to tap unexplored reserves.

    All companies had, however, failed to discover reserves this large and pulled out of the country.

    Furthermore, little to no attention was given during the tenures of previous governments to exploit the domestic wealth of minerals and fulfil the energy needs of the country. Instead, dubious contracts like rental power plants and Liquified Natural Gas (LNG) power plants were signed, which the National Accountability Bureau (NAB) has been investigating.

    Pakistan can save more than $900 million on the import bill if Margand gas reserves replace LNG, which costs domestic consumers 100% more than Sui gas, a former board director of the PPL has said.

  • NAB ‘creating hurdles’ in execution of govt decisions: report

    NAB ‘creating hurdles’ in execution of govt decisions: report

    The National Accountability Bureau (NAB) is creating hurdles in the implementation of some of the federal cabinet’s decisions, a report presented to Prime Minister Imran Khan has revealed, Express Tribune reported.

    According to the details, the report reveals that the federal cabinet had decided to hold talks with the LNG terminal firms in its meeting held in October last year and the Ministry of Finance and Petroleum had to talk with these companies on profit rates.

    However, these talks could not move forward because NAB is holding an inquiry against an LNG terminal company and they have to wait while the inquiry is underway.

    The report also said that all the LNG terminals are fully functional right now and any action can disturb the situation.

    After the consultation, the federal cabinet decided that the talks with the LNG terminal companies should be postponed till the completion of the inquiry.

    The federal cabinet in a recent meeting had proposed to reopen agreements with LNG companies, however, Minister of Law Farogh Naseem opposed the proposal and said that new investors will hesitate to invest if the agreements were reopened.