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Musadik Malik says gas load-shedding inevitable despite extra LNG in January

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  • Country to have additional 200 million MMCFD LNG in Jan-Feb.
  • Govt encourages private sector to invest in new LNG terminals.
  • Planning to import 20,000 tonnes of extra LPG for winters.

ISLAMABAD: Musadik Malik, the Minister of State for Petroleum, on Monday warned that gas loadshdding is inevitable in the coming months despite the arrangement of additional 200 million cubic feet per day (MMCFD) liquefied natural gas (LNG) in January-February 2023, compared to the same period last year.

“Despite the availability of an extra LNG cargo during the upcoming peak winter season, gas load-shedding will be inevitable,” Malik said while briefing the Senate Standing Committee on Petroleum in a meeting held under the chair of Chairman Committee, Senator Mohammad Abdul Qadir.

“In January, Pakistan will have ten LNG cargoes, while in February nine of them will be available for local consumption, while this extra liquefied gas will be imported by state-run companies.”

Malik said the government would encourage the private sector to invest in new LNG terminals.

The state petroleum minister was critical of the supply of gas to the fertiliser-makers at discounted rates.

“The gas costing Rs4,000/MMBTU was being supplied to the fertiliser factories for just Rs250/MMBTU under the pressure of the fertiliser mafia,” the minister said.

A poor common consumer pays $17/MMBTU, while the exporting sector gets the same gas for $9/MMBTU; however, it is provided to the fertiliser-makers at a meagre $1.35-3/MMBTU.

“It is true exports are also important, the gas sector circular debt has ballooned to Rs1,500 billion,” he said adding, “We have to strike a balance between gas prices. We did not buy gas when it was available at $2-2.5/MMBTU. Now it has reached $40/MMBTU.”

Malik also informed the meeting that the country was also planning to import 20,000 tonnes of liquefied petroleum gas (LPG) for winter months.

Speaking on the occasion, PTI’s Senator Saifullah Abro said foreign investment in the gas sector would be highly welcome. “However, we need to be careful lest these investing companies should trap the country into paying them capacity payments like some independent power producers (IPPs),” Senator Abro said.

During the meeting, Abro and Malik traded barbs over mismanagement in the buying of LNG.

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The NORINCO Group is invited by CM Sindh to explore opportunities.

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Chinese companies have been invited by Sindh Chief Minister Syed Murad Ali Shah to visit Karachi and other regions of Sindh Province in order to observe the quickly growing businesses and investigate prospects in fields like clean energy, infrastructure development, and public transit projects.

Speaking in Beijing to a delegation headed by the chairman of NORINCO International Co., Ltd., he stated that all facilities required would be provided by the governments of Sindh Province and Pakistan.

With assistance from NORINCO International, the Sindh Chief Minister stated that the Provincial Government will firmly urge North Vehicle and BeiBen to think about setting up a Vehicle Assembly Plant in the Dhabeji Special Economic Zone.

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A deal with Pakistan to fight financial crimes has been approved by the Saudi cabinet.

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In order to strengthen collaboration in the fight against money laundering, terrorist financing, and associated crimes, the Saudi Press Agency announced this week that the Saudi cabinet, led by Crown Prince Mohammed bin Salman, had approved a memorandum of understanding (MoU) with Pakistan’s Financial Monitoring Unit (FMU).

Due to its severe money laundering and terrorism funding issues in recent years, Pakistan was added to the Financial Action Task Force’s (FATF) grey list in June 2018.

The nation was taken off the gray list in October 2022 after enacting extensive measures to fortify its financial system.

The FMU is Pakistan’s financial intelligence unit, created under the Anti-Money Laundering Act of 2010 and tasked with collaborating with foreign partners and evaluating reports of suspicious transactions.

According to the SPA, “the cabinet approved a memorandum of understanding regarding cooperation in exchanging investigations related to money laundering, terrorist financing, and related crimes between the Financial Monitoring Unit in the Islamic Republic of Pakistan and the General Department of Financial Investigation at the Presidency of State Security in the Kingdom of Saudi Arabia.”

The MoU is an indication of Saudi Arabia and Pakistan’s growing strategic partnership. A significant Pakistani diaspora resides in the Kingdom, and numerous Pakistani businesses have established a presence there.

Saudi Arabia has been a key supporter of Pakistan’s economy, bolstering its reserves with substantial deposits in the State Bank of Pakistan and offering deferred oil payment facilities.

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SFD and Pakistan Sign Two Deals Totaling $1.61BLN

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Two agreements totaling $1.61 billion have been inked by Pakistan and the Saudi Fund for Development to improve their bilateral economic cooperation.

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