Your Suggestion?

[Okara]

You should understand difference between a contract on fixed price and contract linked to percentage of another similar commodity. 13% of brent does not mean $13.
In 2016 average Brent price was $43 and 13% of $43 was around $5.5, with volatile security conditions in Pakistan at that time and first contact, it was quite competitive contract.

India was was paying $13 per mmbtu at that time with fixed agreement, it renegotiated after Pakistan contract.

From where u got the numbers of average price of oil in 2016? In Dec 2016 it was close to USD60
And 13.37% of 60 is USD8 per MMBTU vs USD5 per MMBTU by india
Based on today's numbers we are paying over USD10 per MMBTU whereas India is USD5 per MMBTU.
Are u willing to pay ur gas bills based on USD10 per MMBTU?

 

[Okara]

You should understand difference between a contract on fixed price and contract linked to percentage of another similar commodity. 13% of brent does not mean $13.
In 2016 average Brent price was $43 and 13% of $43 was around $5.5, with volatile security conditions in Pakistan at that time and first contact, it was quite competitive contract.

India was was paying $13 per mmbtu at that time with fixed agreement, it renegotiated after Pakistan contract.

First of all not sure from where u got this number of USD13 per MMBTU for India. As per the news India used to pay USD12 per MMBTU which they renewed USD5 per MMBTU in 2015. U are right 13% of Brent can't be USD13 it could be more or less.
Based on today's Brent Price of 78.94 the 13.37% is USD 10.554 per MMBTU. Are u willing to pay based on this price?
Can you provide one contract or project done by PPP/PMLN which is not running on Subsidy?

 

[AWAITED]

Our peak utilization of electricity is around 27kMWe and transmission capacity ie 24kMWe.
Installed capacity is 38kMWe.
Let's assume we increased the transmission capacity still 11kMWe will be left for which we have to pay. Surin winter our utilization drops to 16kMWe.
Suppose we create a utilization of 38kMWe, are we willing to pay based on contracted

yes we have to invest on transmission and decrease the price of electricity so much so that it increases demand, even if we loose on selling price is decreased but we would be selling unused electricity which will compensate the lower selling price. And this will result in more economic activity which leads to more tax collections

 

[Okara]

AWAITED
yes we have to invest on transmission and decrease the price of electricity so much so that it increases demand, even if we loose on selling price is decreased but we would be selling unused electricity which will compensate the lower selling price. And this will result in more economic activity which leads to more tax collections

My response:
Let me share example from India: Solar power sold to government by IPP is less than Indian Rs 2 per KWh
https://www.thehindubusinessline.co...-sees-a-new-low-of-199kwh/article33378868.ece
The average cost to consumers in India is above Indian Rs 5 per KWh.
This means Indian Government is buying at Pak Rs 4.75 / KWh and selling at Pak Rs 12 /KWh

Now let me give you example of Quid e Azem Solar Power (Pvt) Ltd.
During 2015, PMLN was buying power from this project at Rs15.2211 per KWh and now after revised is Rs 13.7688
https://nepra.org.pk/tariff/Tariff/Petitions/2021/QAU Solar.pdf
Let's assume u are a businessman from Pakistan and u are paying based on the PMLN contracted price, will u be able to sell ur product in Pakistan at profit let alone in the world?
Government is giving subsidy to our businesses but question is from where this money is coming for Subsidy?
Currently based on Peak Utilization, the unused capacity is 14KMWe. This means 14Millions KWhs and in one day 336millions KWhs and in one year its 112.6 billions KWh of unused energy. If avg price is Rs10 per KHh then Rs 1126 billions per years are wasted. Keep in mind this calculation is based on peak power consumption not the lowest which is less than 50% installed capacity.

 

[Resilient]

First of all not sure from where u got this number of USD13 per MMBTU for India. As per the news India used to pay USD12 per MMBTU which they renewed USD5 per MMBTU in 2015. U are right 13% of Brent can't be USD13 it could be more or less.
Based on today's Brent Price of 78.94 the 13.37% is USD 10.554 per MMBTU. Are u willing to pay based on this price?
Can you provide one contract or project done by PPP/PMLN which is not running on Subsidy?

This PTI government last month bought an LNG cargo at the highest-ever price of $30.6/mmbtu from Qatar Petroleum, so I would happily buy @ $10.554 per MMBTU . We are buying 11 cargo at average price of $9.5/mmbtu through LNG contracts of PMLN as not all of the agreements were at 13.3% of Brent two others contracts are around 10% of Brent.

Pakistan accepts costliest-ever LNG cargo amid gas crisis

Pakistan LNG Limited floats emergency bids for November after two firms default on their commitments.

www.dawn.com

Last year we were buying @ $2.1/mmbtu while India was still buying $5/mmbtu so the commodity contracts are very tricky and complicated, India also struck an agreement in 2016 @ oil-linked at an indexation level of 14.5% to a barrel of crude (when Pakistan inked agreement @ 13.3% of crude Price).

India's GAIL, Russia's Gazprom renegotiating LNG deal -sources

GAIL India Ltd is in talks with Russia's Gazprom to delay and renegotiate a 20-year gas purchase deal undercut by low spot prices, sources familiar with the matter say, as weak demand at home forces it to stall some contracted supply.

www.reuters.com

Which LNG or Coal based power project setup during last 5 years is being run on subsidy??

 

[Resilient]

First of all not sure from where u got this number of USD13 per MMBTU for India. As per the news India used to pay USD12 per MMBTU which they renewed USD5 per MMBTU in 2015. U are right 13% of Brent can't be USD13 it could be more or less.
Based on today's Brent Price of 78.94 the 13.37% is USD 10.554 per MMBTU. Are u willing to pay based on this price?
Can you provide one contract or project done by PPP/PMLN which is not running on Subsidy?

India was not only buying @ $13/MMBTU from Qatar but also inked an agreement with a US company has clinched an LNG supply accord with an Indian firm at $12 to $13 per million British thermal units (mmbtu) in 2014.

Unfriendly ties: US turns down Pakistan’s demand for LNG supply | The Express Tribune

Asks Islamabad to import gas from Qatar that may prove costly.

tribune.com.pk

The TAPI would also cost India @ $13/MMBTU

India to pay $13 per unit for natural gas from TAPI Pipeline

India will pay $13 for buying natural gas through the much-celebrated TAPI gas pipeline and will take indirect responsibility for safe transit of the fuel.

economictimes.indiatimes.com

 

[Resilient]

AWAITED
yes we have to invest on transmission and decrease the price of electricity so much so that it increases demand, even if we loose on selling price is decreased but we would be selling unused electricity which will compensate the lower selling price. And this will result in more economic activity which leads to more tax collections

My response:
Let me share example from India: Solar power sold to government by IPP is less than Indian Rs 2 per KWh
https://www.thehindubusinessline.co...-sees-a-new-low-of-199kwh/article33378868.ece
The average cost to consumers in India is above Indian Rs 5 per KWh.
This means Indian Government is buying at Pak Rs 4.75 / KWh and selling at Pak Rs 12 /KWh

Now let me give you example of Quid e Azem Solar Power (Pvt) Ltd.
During 2015, PMLN was buying power from this project at Rs15.2211 per KWh and now after revised is Rs 13.7688
https://nepra.org.pk/tariff/Tariff/Petitions/2021/QAU Solar.pdf
Let's assume u are a businessman from Pakistan and u are paying based on the PMLN contracted price, will u be able to sell ur product in Pakistan at profit let alone in the world?
Government is giving subsidy to our businesses but question is from where this money is coming for Subsidy?
Currently based on Peak Utilization, the unused capacity is 14KMWe. This means 14Millions KWhs and in one day 336millions KWhs and in one year its 112.6 billions KWh of unused energy. If avg price is Rs10 per KHh then Rs 1126 billions per years are wasted. Keep in mind this calculation is based on peak power consumption not the lowest which is less than 50% installed capacity.

QA solar park is government entity it government's prerogative that it lower the sale price of its product the extra amount was going to government not in someone's pocket, what is wrong with that??

And you were wrong that we can not renegotiate.

 

[Okara]

QA solar park is government entity it government's prerogative that it lower the sale price of its product the extra amount was going to government not in someone's pocket, what is wrong with that??

And you were wrong that we can not renegotiate.

R u sure? Why is PVT in its name?
https://www.qasolar.com/

 

[Complete Sense]

Thank you for asking.

What I have learnt living in this country for decades is that if you are thrown into any such situation instead of trying to do it yourself hire a specialist attorney at law overseeing such type of property disputes, give him all the details honestly, ask him about the fee structure and tell him I will put 5 to 10% extra on this but I want a judgement in my favor as soon as possible. That is the only solution coming to my mind my friend in this tight situation.

Maein Allah say aap kay leeay duaa karoun gaa. Insha Allah behtri ho gee.

Never take a lawyer, my suggestion is buy a judge and fuck the manager.

 

[Resilient]

R u sure? Why is PVT in its name?
https://www.qasolar.com/

Read it again:

Quaid-e-Azam Solar Power (Pvt.) Limited is a public-sector for'profit company established by the Government of the Punjab. The company has been established for the setting up of renewable energy projects in general and Solar Energy Power Projects in particular.

In previous contract up-front tariff would have gone down after 10 years means in 2025, now government have given them another 10 years starting from June 2020 on 12% up-front tariff. Wah Wah