Pakistan; a potential LNG exporter?
The present PMLN government has signed a binding contract with Qatar to buy 1.
3 million tons of LNG every year for next 20 years at a varying price of Brent.
At the current low rates of oil, the price of RLNG is higher and unfeasible compared to local gas supply.
The only industries that can use RLNG at its rate are power, CNG and fertilizer industries only.
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 RLNG.
This would mean that for next 20 years Pakistanis will have to suffer crippling high electricity and gas prices.
It is very worrying to find out that our country’s prime minister, who signed the RLNG long term purchase agreement, has admitted to have 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, that compelled PSO to sign the long term RLNG contract, was aware that studies have shown 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 Pakistani’s to save us from future crippling high energy prices by compelling the government to end long term RLNG contracts and instead sign contracts for the enhancement in exploration and production activities of local natural gas.