Pakistan procures costliest ever LNG cargo from qatar petroleum

[baqai]

why wasn't it purchased when it was cheap? haven't these guys heard of what forecasting means? what project plan means? what budgeting means? i mean the kind of excuses which are being given makes me want to tear my educational credentials to shreds.

it's very convenient to say "oh but look in xyz it's even more costlier" well .. **** that xyz and **** every other place, what we care for is our country, my question is NOT if it's cheaper anywhere else or not, my question is WHY wasn't it purchased when it was cheaper?

 

[Communism]

why wasn't it purchased when it was cheap? haven't these guys heard of what forecasting means? what project plan means? what budgeting means? i mean the kind of excuses which are being given makes me want to tear my educational credentials to shreds.

it's very convenient to say "oh but look in xyz it's even more costlier" well .. **** that xyz and **** every other place, what we care for is our country, my question is NOT if it's cheaper anywhere else or not, my question is WHY wasn't it purchased when it was cheaper?

Pakistan has poor natural gas storage capacity.

 

[Patriot forever]

why wasn't it purchased when it was cheap? haven't these guys heard of what forecasting means? what project plan means? what budgeting means? i mean the kind of excuses which are being given makes me want to tear my educational credentials to shreds.

it's very convenient to say "oh but look in xyz it's even more costlier" well .. **** that xyz and **** every other place, what we care for is our country, my question is NOT if it's cheaper anywhere else or not, my question is WHY wasn't it purchased when it was cheaper?

Eni and Guvnor defaulted on their long term contract shipment of 1 cargo each just days ago, so the emergency replacement.
Now you can't forecast that, Can you?

Apart from that Pakistan bought the cheapest cargoes in spot as well compared to India and Bangladesh in the recent months.
(This means they planned their purchases very well)

We do not have LNG storage and if by some means you are referring to 'hedging' don't do it.

Even during this emergency tender Pakistan secured better rates than Bangladesh.

 

[Pandora]

The United States CNG market at Henry Hub is not subsidized in the way that you are talking about. The Domestic cost and Export cost are the same from Henry Hub. That's why the United States has significantly higher domestic CNG prices than most other major natural gas producers.

You are forgetting that there are real costs to produce LNG from CNG.

If it is politically difficult to buy Iranian pipelined CNG, then pakistan should seriously consider the pipelined CNG from turkmenistan as talked about here often, or building a pipeline for CNG from Qatar.

If this issue isn't resolved, Pakistan will be a poor country paying rich country prices for natural gas forever.

TAP gas line is making good progress. Considering that its a multi country project all the technical details need to be ironed out. TAP will come online sometime at the end of this decade.

 

[Communism]

Pakistan should have better rates than India and Bangladesh, since it's the closest country to the middle east.

I don't think such minor price differences mean much more than that discount due to distance.

 

[blueazure]

Nonsense.

There is no reason for pipelined CNG to be priced the same as cryogenically liquified natural gas.

There's many fundamental reasons why the relatively deregulated CNG and LNG markets in the United States have substantial differences in cost.

The current Henry Hub transport excluded price for CNG is ~5.50 USD/mmbtu while the current Henry Hub derived transport excluded price for LNG is ~9.50 USD/mmbtu (it's just CNG from Henry Hub that has been cryogenically liquified on site).

IRAN south pars 2 gas field is the 3rd largest NG deposit in the world , there is no question of supply constraint

ironically, qatar also extracts NG from the other half of south pars ,converts to LNG and ships that to Pakistan at 30USD /MMbtu

but the EXPERTS on pDF will tell you both are same priced !

Who says Iran is giving you cheap NG? Last time they negotiated deal zardari signed a deal with them at 13 mmbtu when market price was 7mmbtu. Now that LNG is being sold at 35-40/mmbtu you can be assured they wont offer it to you at a dime less. Iranis are not susralis of Pakistan that will be giving you low cost NG to you in jahaiz. Also considering Pakistan didnt build its part of pipe line how do you suppose we will transfer that NG? Also you have the impression that LNG and NG are priced differently but the fact is that they are priced equally. Pakistan is enjoying cheap local NG so this has you people confused.

B.S

unless you can up with authentic sources to back up your claim