Qatar LNG price agreed at 13.37% of Brent. Is it a good price?

[Shahid Abassi]

Pakistan has signed a contract for purchase of LNG from Qatar for next 15 years. The price has been agreed at 13.37% of Brent. I just wonder if someone here could enlighten us with an appraisal and analysis of the deal.

As per my knowledge 1 barrel Brent oil = 5.8 Million BTU of gas
So if we purchase gas at 5.8th (17.24%) of Brent price then the price of the gas will be the same as of oil.

But then excessive port charges for LNG and then cost of processing the liquid to gas will add on to the 13.37% and the end price comes close to 16%.

In the end we will be paying close to what we pay for the oil.

 

[kaka4u]

itnay shor sharabay k bajaood akhir kar deal kar he leee sab sath sath hay chaye wo koi bhe ho sirf bhar chilatay hay assembly may atay tak nahi
noora in full flow army chief k janay k bad yeh or khul kar khelay ga

 

[Killthecorrupts]

Another topic of discussion for media.

 

[arafay]

brent also goes through processing and transport. I think we need to look at the other deals going through in recent months to compare with the 13% figure. keep in mind that even a commission of $0.50 per BTU will result in millions of dollars since the size of the deal is massive.

 

[GujjarPakistani]

یہ ایک تاریخی معاہدہ ہے جس سے آنے والے سالوں میں گیس کی کمی پہ قابو پایا جاسکے گا اور سی این جی سیکٹر اور صنعت کو بلاتعطل گیس سپلائی سے ملکی ترقی میں نمایاں بہتری آئے گی اور گھریلو صارفین جن مسائل سے گیس کی کمی کی وجہ سے پریشان رہتے ہیں اس کا ازالہ ہوگا ، ۔۔۔بالاآخر ایل این جی کے بارے جو خدشات تھے ان کا خاتمہ ہوا ۔

 

[Talwar Gujjar]

I think 13.37% of Brent prices is a reasonable contract for LNG. At today's price of about $31/bbl for Brent Crude, it will be about $4.15/MMBtu for LNG. Current LNG spot prices in Middle East are about $6.5/MMBtu. LNG is a movable commodity. It will trade close to the market price.

 

[OnlyPK]

umeed krta hu battameez logo ko Jail se nikal kr aqal ayee ho ge, ainda pengy leny se pehly 100 bar sochy gy

 

[aping4]

c ' Mon PTI apni be tukki logic yahaan bhi maar do k aisa hota tu wesa hota. khur dimagh PTI

 

[aping4]

tum pti walon ne aa k jo kamaal dekhanay hain wo bbhi dekh laingay k konsa tteer marlo gay

laikin Ppp se tu 1000 derja bhehterhogi PTI nodoubt
kion k ppp mulk dushman ha