NAB declares the Qatar LNG deal
NAB has dispatched a preliminary report of satisfaction over the LNG import deal with Qatar.
Dunya News Reports (Yaruq Malik)
ISLAMABAD: The National Accountability Bureau (NAB) has dispatched a preliminary report of satisfaction over the Liquefied Natural Gas (LNG) import deal with Qatar. The Ministry of Petroleum gave a briefing to the NAB Chairman regarding the LNG deal which was later on declared as ‘transparent’ and satisfactory by the NAB officials.
The Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi had requested the NAB Chairman, Qamar Zaman Chaudhry, to look into the Qatar-LNG deal in order to ensure its transparency as the deal became controversial with the claims that the deal is signed at inflated rates. NAB has shown satisfaction over the rates and the procedures, which will follow up to the final agreement between Qatar and Pakistan over the import of LNG.
Previously, the government had been under pressure from the National Accountability Bureau (NAB) after the LNG scandal that took place prior to the Pakistan-Qatar LNG deal. The government had planned to buy LNG at inflated prices in order to tackle the energy crisis in Pakistan which would have cost Pakistan $5 million per day according to the Pakistan Economy Watch (PEW) officials. According to PEW, the deal would have finalized at $18/per million British thermal units (MMBTU) which would have eventually become $21/MMBTU at the Karachi ports. This deal would have caused a 200 percent increase in gas prices for the end users.
Moreover, the secretary petroleum Muhammad Ejaz Chaudhry was fired due to his resistance against the disputed deal. The Oil Gas Regulatory Authority (OGRA) was also put under pressure by the government due to the institution’s disagreement over buying LNG at inflated rates.
Qatar is also dealing with India for LNG; however, the price at which India has secured a final agreement is 20 percent higher as compared to the deal with Pakistan. India also faces a penalty of $500 for violating the previous deal it signed with Qatar.
The current deal between Pakistan and Qatar is not a ‘slope’ priced deal as under the ‘S’ shaped deal, the price would vary greatly due to the ever-changing economic conditions in the International market.
“The LNG price was not decided in ‘S’ shaped fearing the wrath of NAB,” the minister said.
Furthermore, the National Assembly has been witnessing aggressive debates between the Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi and members of Pakistan Tehreek-e-Insaaf during its sessions on the matter of LNG import and its finalized rates.
The discussion during one of the sessions became violent when Shireen Mazari, member of PTI, blamed the federal government for not being ‘clear’ regarding the price at which LNG is being imported from Qatar-gas Company.
“LNG has been imported from Qatar but the federal government is not willing to tell us the price of its import,” said Mazari.
The heated debate became even more aggressive when Shireen Mazari accused the government for hiding the role of Saif-ur-Rehman, the ex-aide of Prime Minister Nawaz Sharif, behind the apparent ‘urgency’ of the multi-billion dollar LNG deal with Qatar.
“Saif-ur-Rehman has shares in the Qatar-gas Company,” blamed the PTI member.
Prime Minister Nawaz Sharif is scheduled to visit Qatar on the 10th of February during which he will sign the final LNG import deal with Qatar.
