Month: December 2020

Towards Private Sector-Based LNG Market

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ISLAMABAD: Why are we prone to crisis? After power deficit, we are in a power surplus crisis. After the introduction of liquefied natural gas (LNG), one would have thought that ample supplies would be available from the international system. However, people complain that they do not have gas for cooking food. Recently, a controversy has erupted over losses and shortages in the gas and LNG sector. There is a long list of allegations – inadequate demand forecasting and coordination, late buying decisions, unplanned tendering, etc. Truth is always in between.…

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Circular Crisis

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As has been the case for many years, and indeed decades, circular debt, notably in the energy sector, remains a major problem for Pakistan. The prime minister has conceded that this is indeed the case and it is one of the causes of grave concern for him, especially as he feels that all the figures given to him have not been accurate. We must learn to project accurate and correct figures so that the government can collectively deal with the problem and that these figures are available to the cabinet…

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KE Acquisition Possible in 6 Months

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China’s Shangai Electric Power (SEP) has expressed a commitment to complete transaction of K-Electric within six months subject to resolution of issues. A meeting, chaired by the minister for privatisation and minister for energy, was held in the second week of the ongoing month on the way forward on issues related to the transfer of K-Electric shares to SEP. Officials from SEP also joined the meeting through Zoom. The Chinese officials shared that once they have clarity on the pending issues, it will take approximately two months to draft a…

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Who Causes Climate Change?

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The short answer is: all of us. Doubtlessly, climate change is caused majorly by the oil corporations. However, taking refuge in this mindset that the powerful and rich oil companies are causing this and we all are somehow innocent is a fallacy. It is quite therapeutic, yet self-deceptive, to view oneself as rather the victim instead of the participant in the story of climate change. Science doesn’t lie even if we do not want to hear what it is telling us. It is true that ExxonMobil knew as early as…

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What is behind the LNG controversy?

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The last few weeks media has been buzzing with allegations and counter-allegations about import of LNG. Both Dawn and Geo have put a figure of $200 milliom as losses due to delay in procuring LNG. Geo went further and put a figure of $122 billion losses incurred by the PTI government due to this delay and other decisions. The debate Friday night between Former Prime Minister Shahid Khaqan Abbasi and SAPM Nadeem Babar helped clarify many issues. Babar clarified that the 23 cargos of LNG procured in the Nov/Dec/Jan window cost an…

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