Babar, Abbasi exchange barbs over LNG purchase issue

Exchanging barbs over the LNG purchase issue, Special Assistant to the Prime Minister for Petroleum Nadeem Babar has said that the former PML-N government is responsible for delays in energy projects while debating with former Prime Minister Shahid Khaqan Abbasi.

Talking to a private channel, the SAPM said that the incumbent government is paying $527,000 per day because of ‘ill-conceived’ agreements of the previous government.

Babar was of the view that anticipating lesser prices of the previous government should not have signed a 10-year contract for fixed price. He said that after 10-years we can’t leave the contract, but only can renegotiate the prices.

To which Abbasi said that the government could not have purchased gas at cheaper rates than what as agree with Qatar. Abbasi said that that due to the agreement Pakistan is reaping benefits of $400 million per year.

Talking on Gas Infrastructure Development Cess (GIDC), Babar said that the previous government had deposited Rs 226 billion in GIDC, which was to be spent on laying the pipeline but this huge amount of Rs 226 billion was not spent by the previous government on laying the pipeline.

GIDC account was empty when PTI government came into power, informed SAPM, while demanding that former PM Shahid Abbasi has to answer about whereabouts of that money.

The Special Assistant said that during the year the average purchase of gas was 20% lower than the previous agreements.

"If we bought gas worth Rs 57 billion, how did we lose Rs 55 billion? We used only 3.9 per cent fuel. In the last year of the previous government, 20 per cent electricity was generated from diesel," he said.

Talking about the demand and supply of cash in Pakistan, the former Prime Minister said that in winters Pakistan requires gas to run its industries, CNG stations, power plants and for domestic use, and the government is responsible to add more gas to the system during this period, for which it needs to purchase new cargos. “Likewise in summers we need gas to run power plants. At present, the installed power plants need 1300 mmcf of gas per day to operate,” said Abbasi.

Abbasi stressed on the need for installing more terminals to meet the needs. “The reality is that no new terminals were installed by the present government, whereas four of the largest companies in the world including Exxonmobil who wanted to install a merchant terminal in Pakistan back off due to government response,” said Abbasi.