buying because LNG is coming out to be at least 20 percent more expensive than furnace oil (can the FIA convince the IPPs as well?). Two, the already bankrupt SSGC and the nearly bankrupt SNGPL are in no mood to assume the payment of $272,479 per day every day of the year.
Next. Indian Oil Corp (IOC), India’s largest refiner, is seeking LNG cargos for delivery in October through December at $6.65/mmBTU while PSO has awarded a tender to Gunvor at $8.3080/mmBTU. In a nutshell, LNG’s price to the end Pakistani consumer is too high and does not make any commercial sense.
Operational: The entire LNG project was structured around Qatar Gas as the supplier. On March 17, 2015, Captain Vishal Chaudhary, Head of Marine Terminals, Qatargas, wrote a letter to PSO. The letter states: “The bathymetric charts of January 2015 show depths lower than 13m……which clearly indicates the need for additional dredging….”
On March 13, 2015, the Port Qasim Authority (PQA) wrote a letter to the Ministry of Ports and Shipping. The letter states: “PQA channel width is 200 meters only whereas per LNG Policy 2011/SIGTTO channel width to be 5 times the beam of LNGC” and that “LNGC parameters are more than the PAQ allowed parameters for tankers”.
Additional dredging, to be certain, is going to take plenty of time and an additional expense of around $200 million. What a mess!
‘In films murders are always very clean. I show how difficult it is and what a messy thing it is to kill a man’ – Alfred Hitchcock
The writer is a columnist based in Islamabad. Email: farrukh15@hotmail.com. Twitter: @saleemfarrukh
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