KARACHI: The government has become habitual to pass the buck to the media for any crisis it creates and leads to wastage of billions of rupees of the national kitty only because the issue was highlighted by the media.
This was the crux of Shahzeb Khanzada’s commentary during his Friday’s episode of 'Aaj Shahzeb Khazada Key Saath'. Following the extreme shortages of wheat and sugar, it is proverbial tragicomic situation that the government has now found fault for gas crisis of its own making with the media. Despite reminding the government of escalating LNG prices, the government remained in slumber to contract the winter demand in advance. But it surprises everyone as to why the prime minister is not even asking his SAPM Nadeem Babaar as to why the national treasury is being so recklessly wasted.
Despite losing billions from October to January, impending gas crisis looms in January and no supplier is available for the first 20 days of 2021, but government is not willing to hold anyone responsible. The power ministry mandarins do not want to concede their failure to invite future bids which is mother of the complex problem, Khanzada commented. They are lumping blame that since it highlighted wastages and snail paced decision making, bidders shied away from the Pakistan market.
It is a highly tragicomic situation that despite knowledge of the heightened winter demand and higher global prices, the government opted to invite spot bids for January during the first fortnight of December. Khanzada said the prime minister must ask media if they scared away the LNG suppliers from supplying the commodity in the first three weeks of January.
On Thursday, no LNG bids were received for the first three weeks of January, but were received for the period ahead, reflecting the market trends and not media fright. SAPM Babar must be asked by the prime minister to identify any other country that has such lopsided planning for winters. The second terminal has the capacity to take in six LNG cargos. For December, the government with utmost wisdom opened most expensive bids in November and ordered six consignments in December for the January. Same goes for February. This is the scenario when the entire gas terminal was available for the shipments and the shipments could have been contracted earlier at cheaper rates. The prime minister must also try and find out as to whey despite extensive demand, the bids were opened on December 10th and then who thought of awarding the contracts on Dec 22. Against the backdrop the shipments were sought on Jan 8. It would be quite magical to find a supplier who in view of the heavy global winter demand, ignoring the complex supply issues and the fluctuating cost would submit bids on December 10 and wait for the award of contract on December 22. The supplier must truly have to have a magic wand to usher the consignment within a fortnight. Then there is the lurking danger of the government cancelling the consignment midway. It would be truly miraculous if the tender results in timely supply.
Quoting the global media, the programme’s host said Pakistan’s failure to attract bids indicates the heavy international demand and the issues confronting the LNG supply chain. Besides Qatar, which produces LNG what other option the country is now left with. And apart form Qatar, the rest of the suppliers are offering gas consignments at 20 per cent inflated rates for January’s end. Hopefully the government will contract its counterparts in Qatar to procure gas at concessional rates or the market rates will drop. The government of Pakistan plans to open February bids on Dec 28 which is reflecting a slope of USD 9.2 ie 20 per cent. The Ministry of Petroleum due to its belated decision making damaged the country’s fragile forex situation and created a looming gas crisis for January which was totally avoidable.
Shahzeb said unlike Pakistan, the rest of the international community, began aggressively contracting futures sale of LNG in anticipation of the second wave of Covid-19 amidst winters. We know that even with supplying the full capacity, Pakistan will fall short of its winter demand exposing people needlessly to biting cold. The Prime Minister Imran Khan, must inquire from SAPM Babar what happened to the claim he made in October regarding procuring future sales for Feb. Now in the second week of December we do not know of the LNG scenario in January and February.
Shahzeb Khanzada said if media is really responsible, why it did not succeed to dissuade the LNG suppliers in the past.
Despite the thick politics pivoting around LNG and its terminals in the last few years, why the suppliers did not avoid the country. How come Qatar offered the lowest bids for January. During the period Shaikh Rasheed’s petition got dismissed by the Supreme Court and NAB thoroughly probed the Qatar LNG deal and its terminals and this was flashed both by the international and domestic media. The entire smear campaign did not discourage the suppliers and Qatar from their interest in Pakistan. Every month spot tenders were needlessly invited and the bigger suppliers continued to participate to their advantage at the cost of the country and the people. Khanzada thought that someone should save the country from these miseries.
