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News Desk
Sunday, June 16, 2013
From Print Edition
 
 

 

ISLAMABAD: In a letter addressed to the Federal Minister of Ministry of Petroleum and Natural Resources (MP&NR) Shahid Khaqan Abbasi, Munawar B Ahmad, P.E discussed a few matters of significance related to the power sector. Ahmad said the news that the MP&NR had submitted to the Supreme Court its decision to recommend to the ECC to cancel the LNG import contract process, is clearly not the appropriate way forward. A new process will take at least six months, may result in a higher price and may not attract credible LNG suppliers or FSRU providers.

 

Second, the news that the MP&NR is considering the import of 400 mmcfd of gas / RLNG from India is preposterous. The cost of LNG to India is about $1 more than Pakistan and there will be additional costs for a new pipeline and transportation costs. This will add another $1 to $1.5. Ahmad said that it cannot be imagined how the MP&NR can justify buying RLNG from India for about $2 - $2.5 /mmbtu more than what would have been supplied under the SSGC tender.

 

Regarding the Iran pipeline project, Ahmad said that it is wishful thinking that the pipeline would be completed in 2014. With the current US stance and geo-political considerations, funding for the $1.5 billion project cannot possibly materialise. He further added that there appears to be no crisis management plan either for the gas or power sector.