Five more LNG deals likely

Published
22

ISLAMABAD: As opposition accuses the government of signing dubious agreements for import of Liquefied Natural Gas (LNG) from Qatar, Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi revealed on Friday that five more such agreements are in the pipeline.

Winding up debate in the Senate on levy of Rs101 billion additional tax on gas consumers to meet the cost of pipeline for transportation of LNG from Qatar, the minister said that he was ready to face a reference for entering into an agreement for import of LNG.

“I will not hire a lawyer, but will argue the case myself,” he remarked.

He termed the LNG agreement a game-changer and said it would help save a billion dollars annually. He said that gas crisis must be addressed to overcome energy crisis.

He claimed that the previous PPP government had tried to purchase LNG at higher rates, but fortunately the deal could not be finalised.

He said that it was a fact that petroleum prices fell from $120 per barrel to $30 in the international market, but the ratio of government’s earnings per litre remained the same.

He said that prices of petrol were lowest in Pakistan among oil importing countries.

He pointed out that petrol in India was available at Rs100 a litre while in Bangladesh it was priced at Rs130.

He alleged that the PPP government devoured a big chunk of gas infrastructure development surcharge which existed in papers only.

Earlier, leader of the opposition in Senate, Aitzaz Ahsan, raised questions over transparency in the deal.

He said a reference may be prepared for signing of the dubious deal.

He asked as to why no international tenders were called and why a long-term agreement was signed with Qatar.

He was of the view that a deal with Iran or Russia could have been made at cheaper rates.

“How can government ink a deal for 15 years,” he questioned.

He said the government had bound the future governments to continue with the import of gas on the same terms, adding that the future governments might find it difficult.

He also questioned the decision to construct the proposed pipeline — an asset of a foreign company from the money collected from people of Pakistan.

Aitzaz said it was surprising that the prime minister himself attended the signing ceremony.

He said Qatar was in pro-Saudi Arabia camp and may ask Pakistan to forget about gas pipeline with Iran.

Published in Dawn, February 13th, 2016

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