Posted - Wednesday, July 24, 2013 - By Tanveer Ahmed - Daily Times
ISLAMABAD: The Pakistan Tehreek-e-Insaf (PTI) has identified major
anomalies in the Qatar LNG deal, being done by the PML-N government, and
called it a “mega scam in making” to defraud the people of Pakistan.
A
fact sheet of this project, prepared by the PTI, has also refuted the
claims that the deal is being reached with Qatar. The party pointed out
that in reality, a private US firm Conoco Phillips (CP) will be selling
LNG to Pakistan rather than directly by Qatar.
“The so-called
government to government deal with Qatar will be through Conoco Phillips
(CP), a private USA energy company,” the PTI said in its fact sheet.
It
said that the prime beneficiary in this deal is a major business group.
The party identified following anomalies in the deal;
“One, the
base cost of LNG from CP at Brent at $110/b is $16.99/mmbtu plus
additional cost of about $ 2.50/mmbtu to be paid to ENGRO, resulting in a
RLNG (Re-gasified LNG) cost of $ 19.49/mmbtu compared to $
17.707/mmbtu. This is clearly a mega scam to rob the people of Pakistan
by about $180 million/year or Rs 18 billion/year.
Two, the Conoco
Phillips/Qatari proposal will not allow any price re-opener in the LNG
price for the duration of the contract for 20 years whereas prices are
expected to go down sharply after 5-7 years.
Three, the Conoco
Phillips/Qatari offer will require the government to take or pay for the
committed LNG irrespective of Pakistan’s ability to lift or not. They
have already indicated that they will not allow resale of any cargo to a
third party.
Four, the fact that no tender has been called by
MP&NR for tolling basis, to store LNG re-gasify and deliver RLNG to
SSGC. The note by Ministry of Petroleum & Natural Resources
(MP&NR) secretary to the ECC claimed, ‘as only EVTL can provide
these facilities on a fast track basis’ which was an attempt to fool the
ECC also.
It has been learnt that a better option of using
existing Jetty/Terminal facilities is available from a major port
facilities operator. However MP&NR in its haste to justify the deal
to favour the pre-selected ENGRO group, has not carried out a survey, or
bothered to even call for Expression of Interest (EOI) by interested
parties.
Five, the MP&NR has also not considered the
technical issues in the strange proposal, wherein ENGRO will supply the
FSRU, and deliver 500 mmcfd for about 5-6 days, in two shipments a month
to SSGC. It has also been learnt from industry sources that Qatar has
explicitly required in the purported deal to supply LNG by its own
Q-Flex carriers, and may not deliver LNG to ENGRO-rented FSRU. The
questionable deal, apparently, has also not considered that the Qatar
Q-Flex carrier cannot berth at ENGRO EVTL Terminal.
Six, on June
14, 2013, the Supreme Court while disposing of the previous LNG case,
had directed that the government was bound to ensure transparency and
compliance with PPRA Rules in the matter of LNG imports. An ENGRO
company was one of the 3 companies whose bids were scrapped in the
earlier round. Now the new Qatar deal is also to be negotiated with
another ENGRO company for handling 200 million cubic feet per day of
imported LNG from Qatar.
Seven, the LPG terminals of SSGC and
EENGRO to be converted to LNG are in the main Port Qasim areas. For
reasons of safety nowhere in the world are LNG terminals located in the
main port areas.”
Post to be found at:
http://www.dailytimes.com.pk/default.asp?page=2013\07\23\story_23-7-2013_pg7_20
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