A Rs. 12 Billion LNG Shipment Was Cancelled and No One Knows Why

Pakistan LNG Limited has canceled an important shipment of liquefied natural gas (LNG) that will cause a loss of Rs.12 billion to the national funds.

It will not only cause a loss of Rs. 12 billion to the national exchequer but will also cause a shortage of gas during winter – to the benefit of furnace oil mafia.

According to media reports, sources in the Petroleum Ministry and the Pakistan Petroleum Limited (PPL) told Pakistan LNG Limited that the LNG is not needed for now and a new shipment should be sent on June 2019. The canceled shipment carried 130,000 metric tons of LNG.

It was known that the canceled LNG vessel was supposed to be received by Pakistan at an 11.38%. However, now the supplying company has sold that vessel at 17% in the European market.

It was said that this cancellation of LNG shipment will result in a loss of Rs. 12 billion as the LNG will become expensive in June and delivery fee will also increase. Due to this delayed arrival, the LNG terminal company will have to pay $1 per MMBTU capacity charges.

They said the cancellation of shipment will create an LNG shortage for industries at the beginning of 2019. PPL said that Sui Northern Gas Pipeline Limited (SNGPL) does not need the LNG shipment right now.

According to the ministry, the SNGPL needed two vessels of LNG due to the requirement of industries in the winter.

When the Petroleum Ministry was contacted for its official response on the LNG shipment cancellation, it said it was unaware of the development according to local media.

While addressing the media a few days ago, the minister for petroleum said that the domestic users are the first priority for gas provision in winters and the power plants come next.

Mixed LNG is being supplied to domestic users in areas of Punjab. In the current situation, RLNG will be supplied to the industries.

Via Tribune

    • only stupid comments can come out of stupid persons.

      PLL sources LNG shipment at the behest of SNGPL. SNGPL reserves the right to adjust their LNG shipment lineup with reference to Their network’s Demand & Supply gap without any interference from OGRA, MPNR or GOVT of PAK.
      Even the article clearly mentions “PPL said that Sui Northern Gas Pipeline Limited (SNGPL) does not need the LNG shipment right now”
      Gov of PAK has no say in this. Next time instead of accusing someone, try to educate yourself first on the matter.

        • I see when defeated with logic you refrain to hurling derogatory names at people. such deep character, much wow

          Not a PaTIyan. Someone who works for SSGC and actually know how LNG shipment and contracts work.

          • Well if you work for the SSGC, than can you elaborate if the LNG gas was indeed needed and now cancelled ? Will this effect the supply of gas in the start of 2019 as stated ?

            • Bhai the word “cancelled” here is not used in the right context. Cancelled doesnt mean you will have to pay for the LNG cargo and you will not get LNG as your demand supply gap is minimal. However, it means that you can get this LNG cargo adjusted against future cargoes for 2 years (which means you have additional cargo lying there which should be utilized within 2 years or you will have to give it away with payments).

              Also, I agree with CozYolo on the contracting and SSGC/SNGPL part. He is correct. Maybe SNGPL has breached transmission capability to supply gas during winters and thats why the deferment of LNG cargo

              • Moreover, there will be no pricing impact on the cargo. You will be payment at 11.37% of Brent price only even if you take it after 2 years. The only hit Pakistan will get will be when the Brent crude prices go above USD 62.5/barrel (which is currently the average price of last three months at which the LNG is priced today)

          • @CozYolo Could you send me the rank of yours so I can check in SSGC. Such stupid idiots are in the ranks of SSGC and then we say why Pakistan is not progressing.

      • Hey pea-brained PTI Supporter stop supporting your Lord Imran Khan for every stupidity. SNGPL don’t even support 50 percent of Pakistan. SSGC is the one that takes care of mainly Punjab and Sindh Industries.
        Sui-Southern takes care of Souther regions and Sui-Northern takes care of Northern regions.
        So why SSGC was not consulted before cancellation?.

        • Bhai aap akhbaar parhne walay log akhbar faroshon ki hee haat karogay… Ground facts ka apse kaya laina daina… Akhbaaar my 90% khabrain jhot hoti hain yaa jhoot bolnay walay politicians ki hoti hai…

        • Mr.Sami the only pea – brained person here is you.
          1. I already answered appropriately in my previous post with screen shot attached
          2. SSGC DOES NOT take care of customers in Punjab. (get your facts straight)
          3. SNGPL is the owner of LNG
          4. SSGC is only the TRANSPORTER of LNG. SSGC is informed of SNGPL’s plan, SSGC CANNOT FORCE SNGPL to buy LNG.
          6. Calling other names over Internet does nothing for your pea-nis size

          I hope I have broken down the facts enough for you to understand

  • One of the best example of Solid & Effective Economic plans of Naya Pakistan Government. They Only have Murghi Katta Paal Bullshit plans. Asad Einstein Umer should look into this matter.

  • Incompetence is more harmful for country than Corruption.

    We are losing more money due to PTI’s government Incompetence then previous governments Corruption.

  • @disqus_ioWzYxWxpB:disqus @Wali Ulllah @Junaid @Sami well said !

    I think Naya Pakistan in 2023 would resemble somewhat similar of 1857 AD sub continent.

    I can only pray that May Allah give Pakistan and its poor people enough strength to sustain bloopers and blunders by this incompetent and illegit / installed government.

    P.S. I’m not associated with PTI, PMLN etc.

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