ISLAMABAD: Special Assistant to PM on Petroleum Nadeem Babar was paying USD $527,000 per day to LNG terminals due ill-conceived agreements of the previous government.
While appearing on private TV channel, the special assistant traded barbs with PML-N leader Shahid Khaqan Abbasi over the LNG purchase agreement.
Babar claimed that the government was buying LNG at the cheapest possible rates. He said the current government paid 20 per cent less price compared with the previous government purchases, saving at least $238 million for the country if summer and winter purchases were taken collectively.
He claimed that it had become hard to supply cheap gas to domestic users due to the previous government’s agreements, and vow they have to pay at least Rs1,400 instead of Rs250-300 per month.
However, the PML-N leader said it is the responsibility of the government to purchase gas and the country needs LNG desperately to run power plants and for various other sectors. He said the current government has not installed new terminals while they can import six more cargoes of LNG today.
He defended the agreement signed with Qatar and said they procured gas cheaper. The agreement was for 15 years but Qatar can leave it after 10 years, he said. Pakistan is profiting $400 million per year and saving $225 million per year due to this agreement.
He said that majority of the gas exploration licenses were issued duiring the PML-N’s tenure but Pakistan produces insufficient and it is difficult to discover huge reserves. He said the funds for the Gas Infrastructure Development Cess (GIDC) are now resting with the government of Pakistan.
SAPM Nadeem Babar agreed that the country needs LNG and appreciated that the PML-N government shifted power plants from diesel to LNG. However, he said that LNG was declared as petrol by the PML-N government and now Pakistan is paying $527,000 per day to LNG terminals.
He asked Abbasi about the whereabouts of the Rs 226 billion collected by the previous government under GIDC, claiming the terminal was paid in full but no gas was received and power plants only ran on LNG for two and a half years and not seven as mentioned.
Nadeem Babar said the PML-N government was responsible for delays in energy projects. He said that construction work on one terminal is starting next month while another will also be constructed soon.
He said the prices were reducing and a ten year contract should not have been signed. He added the government cannot leave the contract with Qatar but only fix prices which were not reasonable.
