ISLAMABAD: The adviser to the PM on Petroleum Dr. Asim Hussain said on Tuesday that Qatar is offering to sell two million tons of liquefied natural gas (LNG)to Pakistan annually at the rate of $13 to $14 per million British thermal unit (MMBTU).
“The Qatari government has taken advantage of the sideline meeting at the groundbreaking ceremony of Iran-Pakistan Gas Pipeline project and offered less than earlier price of around $18 per MMBTU,” Dr. Asim said in a press briefing on Tuesday.
Dr. Asim said there is a Memorandum of Understanding (MoU) with Qatar for some time but now they have offered LNG at reduced rates, adding that the Qatari government has reduced the rates of LNG that was being offered some time back. However, the adviser declined to inform media about the new rates being offered to Pakistan by the Qatari government.
The advisor said that the import of LNG from Qatar is a different project from the existing LNG project over which the Supreme Court has issued a stay order.
“This would be a government-to-government agreement and it is an unbundled project,” he said. “We are to lift LNG from Qatar ourselves and all the transportation and local handling is our responsibility.”
Earlier, the Qatari government was offering LNG at around $18 per MMBTU, and the official of Petroleum Ministry said that it was expected that the new rates would be $4 to $5 per MMBTU less than the earlier price.
While, the adviser declined to comment over the query that Qatar has given price relaxations, as progress is being made towards international gas pipeline with Iran, he said that the Petroleum Ministry will be submitting a summary to the cabinet meeting to be held on Wednesday (today).
The ministry is planning to convert some part of the progas LPG terminal at Port Qasim, Karachi.
“This Progas terminal has been acquired by the government through the Sui Southern Gas Company and it will also be used for the bulk import of LPG,” Dr. Asim said.
In reply to a question about the possible US sanctions on Pakistan as a result of IP gas pipeline project, he said certain quarters including media is being cynical, which is not a correct thing.
“We have to do what is needed for the country and as for the international community it is selling gas to Iraq, Afghanistan, Armenia and even Kuwait,” Dr. Asim said. “These are places we know of besides they are selling oil to China and India – nobody is talking about sanctions there.”
The adviser also lambasted those spreading rumours in this regard, and said that the cost of the project was $1.35 billion, “But who is giving this amount of $7.5 billion or any other figure.”
Dr. Asim said that if any political party or group was spreading incorrect information or trying to oppose the project should be rational and realistic. “They should understand that it is an issue of the country and not any political party or community.”
Dr. Asim further said that the Petroleum Ministry was also forwarding a summary to the cabinet regarding unbundling of the SSCG and SNGPL. “This is a very serious and challenging job as there is very strong resistance against it,” he said. “Even the officers are involved in gas theft.”
Under the unbundling plan, the government would be responsible for transmission of gas only, while the smaller semi-autonomous companies would be responsible for selling the gas to consumers in their respective areas.” Now these companies are so huge that they are not manageable- we should learn from the world experience rather than reinventing the wheel, he added.
The adviser also said that both the SSGC and the SNGPL lack progressive vision, while OGRA lacks technical expertise to guide them. “The gas lost from the pipeline in any terror attack is categorised as loss but this should have been insured and accounted for,” he said. “But none of them understand that we need rules for insurance of gas in the pipelines or gas thefts by a non-consumer etc.”
Highlighting various policy initiatives taken by the incumbent government he said, “We have set a direction and paved the ground for the next government to focus on the implementation side.”
DND
