The Special Assistant to the Prime Minister (SAPM) for Oil, Nadeem Baber Friday, In a series of video tweets for the Oil Division’s official report, he said that the previous Pakistan Muslim League-Nawaz (PML-N) government had brought liquefied natural gas to the Pakistani market without building warehouses and therefore. declare gasoline, which costs almost twice as much as locally produced gas.
In the given scenario, SAPM states that each LNG shipment must be used within four to five days without storage facilities to moor another cargo ship.
He declared LNG a petroleum product under the PML-N regime, saying that every consumer using LNG had to pay the full price of the product.
He said he had repeatedly wondered why LNG was not delivered during the summer when prices were lowered, which also shows bad information about elements spreading speculative news in the media, he added.
SAPM said it was noted that the government provided LNG to every user who requested it for all months in the summer.
He said other allegations had been made against the government that heating oil was used to generate electricity in the summer and had insufficient supply of LNG. “Plus, it’s completely wrong and based on speculation and misinformation.”
Nadeem Babar said the government previously produced 28 percent of all electricity from heating oil last summer, while the current government only generated 5 percent and 3.6 percent of total electricity in eleven months of this year in the summer of 2019.
He said all related data was available on the National Electricity Regulatory Authority’s website.
He said there was another misconception that earlier purchases could help lower LNG prices and that the government should take goods for December to January in August, not October.
During development, Pakistan purchased the most expensive liquefied natural gas in February 2018, the last year of PML-N management, at a price of $ 10.25 per MMBTU (Millions of UK Thermal Units) with a difference of 71 days between opening of bidding and Gas supply.
In August this year, the Pakistani government of Tehreek-i-Insaf (PTI) bought the cheapest cargo in the last five years of LNG trading with a lag of only 39 days between bid opening and delivery.
“So it is a complete misconception that more days between auction and delivery mean lower prices,” he added.
According to SAPM, so far the PTI government has delivered the entire cargo of liquefied natural gas with an average interval of 61 to 62 days between tender and delivery. December to January cargoes are purchased at intervals of 45 to 50 days.
The PML-N government purchased 18 shipments of liquefied natural gas at an average price of USD 8 for MMBTU in the last winter of December 2017 – January 2018, while the PTI government purchased 23.5 cargoes of LNG at an average price of USD 6.34 for MMBTU for December 2020 – January 2021.