The government has yet to place Pakistan Qatar Liquefied Natural Gas (LNG) agreement signed on February 10, 2016 on the website of either Public Procurement Regulatory Authority (PPRA) or Pakistan State Oil (PSO), which is a legal requirement. When the Federal Minister for Petroleum and Natural Resources, Shahid Khaqan Abbasi was contacted, he said that placing the agreement on the website was PSO's and PPRA's responsibility.
An official of PSO told Business Recorder that all the details of the contract would be uploaded on the site soon; however, he was not clear about the exact date the agreement would be uploaded.
The agreement envisages import of 2.25 million tons of LNG in 2016 and 3.75 million tons in 2017. PSO will pay Qatargas every fortnight through Standby Letter of Credit (SLBC) at 105 percent of the value of four LNG cargoes.
PSO management has requested the Petroleum Ministry to arrange advance payments from LNG consumers which include Punjab CNG outlets, fertiliser plants and power sector.
At present, Delivered Ex-Ship (DES) LNG price is $4.85 per Million British Thermal Unit (MMBTU), other import related cost is $0.0088 per MMBTU and LNG terminal charges are fixed at $0.66 per MMBTU. LNG cost also includes: (i) retainage at 0.75 percent, (ii) transportation losses 0.5 percent of DES price, and (iii) PSO margin at $0.88 per MMBTU. The sum total of these costs is $6.64 per MMBTU.
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