The present government of PML-N has signed a binding contract with Qatar to buy 1.3 million tons of LNG every year for the next 20 years at a varying price of Brent. At the current extreme low rates of oil, the current price of RLNG is higher and unfeasible compared to local gas supply. The only industries that can use RLNG at current rate are power, CNG and fertiliser industries. And in the future when oil rates increase the RLNG rate will be very high and no local company would want to buy it. So the future government of Pakistan would either have to pay a very high penalty or force domestic users to buy the expensive RLNG. This would mean that for next 20 years Pakistanis will have to suffer crippling high electricity and gas prices.
I am amazed how our country leaders can sign long term buy agreements with varying prices as everyone knows that long term agreements are beneficial on fixed price. Everyone can buy RLNG on varying price through ‘spot’ purchases, which means one off purchase at current market price plus discount.
It is also very worrying to find out that our country’s prime minister, who signed the RLNG long term purchase agreement, has admitted to having long term family business relations with the Qatari loyal family who are heading Qatargas, the RLNG selling company.
Similarly, I am disgusted to find out that the Ministry of Energy and Power was aware that studies have proven Pakistan to have the World’s 9th largest natural gas reserves that can potentially power the entire country for 250 years.
Therefore I request all sane Pakistani’s to save us from future crippling high energy prices by compelling the government to end long term RLNG buy contracts with varying prices that are not feasible and instead sign contracts for the enhancement in exploration and production activities of local natural gas.
When Pakistan has the potential to become LNG exporter, why should we become RLNG importers?
Engr Shahryar Khan Baseer
Peshawar