Thread by @MiftahIsmail

As you know Ali bhai this matter was in govt’s hand and under PPRA rules during our term yet we still bought LNG in time and cheaper than other players in the market. And that too under constant slanderous and groundless criticism from all quarters. 1/9

https://twitter.com/alikhizar/status/1335972446265028609

The PTI govt missed two great opportunities on LNG this year. First to do a one- or two-year deal to purchase LNG for $4 or less (it’s buying at over $7 now, losing millions of dollars monthly for next two years). And second to tender in August for gas in December rather than 2/9

delay till October thus losing over $40 million just in December. But rather than admitting its mistakes it is coming up with increasingly convoluted and shifting excuses, and of course blaming the PMLN! For instance PTI says PMLN didn’t get any storage built. 3/9

How did that prevent PTI from ordering in August as opposed to Oct/Nov? Besides if LNG storage were actually important in its eyes, why couldn’t it arrange an FSU (Floating Storage Unit) that could easily have come in a few months? It is in power for over 2 years! 4/9

It also at times says PMLN govt treated LNG like a petroleum product (petrol price is determined monthly by OGRA) as opposed to indigenous gas (which is priced by OGRA in a lengthy process). How does that prevent it from ordering LNG on time or ordering enough? It doesn’t. 5/9

It also argues that ring-fencing of LNG (meaning domestic gas consumers don’t end up subsidising LNG customers) by PMLN govt means it couldn’t order enough LNG. That’s just wrong. The 3 new LNG based power plants need 600 mmcfd. In addition “4 sisters” need ~200 mmcfd of LNG. 6/9

Nandipur plus Roche need another ~200 LNG. KE needs more than 200 mmcfd. That’s more than 1200 mmcfd or two terminals’ full contracted capacity, without counting CNG pumps demand. This shows that another excuse offered by PTI (there isn’t enough demand for LNG) is also false. 7/9

CNG pumps have a demand of ~200 mmcfd. Plus a lot of industry and commercial units can and are willing to pay LNG price rather than having no energy or running on FO or diesel. The huge demand for gas in Pak plus dwindling indigenous supply were the reasons Exxon Mobil had 8/9

decided to invest in an LNG terminal in Pvt sector in Pak during the PMLN tenure. But after a 2 year run around by PTI, Exxon walked away. Other investors are also unhappy. But to set up new terminals a new pipeline has to be laid. But this govt has failed to do so. 9/9