Page 5 - AsianOil week 23
P. 5
AsianOil
SOUTH ASIA AsianOil
to relinquishing it in 2013. e two companies, along with junior partner Niko Resources, had to relinquish more than half of the deep water KG-DWN-98/3 (KG D6) Block in 2013 after production declined rapidly and failed to meet initial targets.
e government’s introduction of new rules in 2017 allowing companies to de ne and pro- pose blocks for auction have encouraged RIL and BP to expand their holdings. e new rules, which also introduced premium pricing and marketing freedoms for challenging reservoirs,
have seen RIL and BP commit to a 400-billion rupee (US$5.76 billion) investment programme for KG-D6.
e government has said it expects OALP-II to attract 400 billion rupees in investment while the third round is anticipated to attract 490 bil- lion rupees (US$7.06 billion).
OALP-II o ered eight onshore blocks, ve shallow-water licences and one ultra-deep water play. OALP-III included 19 onshore licences, three shallow-water blocks and one deep water block.
PLL opens tender for 10- year LNG supply contract
PROJECTS & COMPANIES
STATE-OWNED Pakistan LNG Ltd (PLL) has reportedly invited international LNG traders to bid for a 10-year supply contract.
Local daily The News quoted unnamed sources as saying this week that the supply con- tract, which would see cargoes delivered to PLL’s Port Qasim terminal on a delivered ex-ship basis, was for two 140,000 cubic metre LNG car- goes per month.
“Since we have a constant rather constantly increasing demand it is better to have a term con- tract,” a source at the petroleum ministry told the newspaper. “ e 10-year term is with an option of ve years walk-away, which e ectively makes it a ve-year arrangement. PLL used to make spot purchases so far, which is quite erratic.”
In January, PLL received 30 o ers from eight LNG suppliers from a tender for ve cargoes for delivery between March and April, with Gunvor understood to have been selected the winner.
Pakistan is understood to be paying 11.99% of Brent crude prices for LNG supplies from Italian major ENI, 11.62% of Brent for supplies from Swiss trader Gunvor and 13.37% of Brent for cargoes from Qatar.
“We expect this term arrangement to be finalised somewhere in between 11% and
12%, and this slope would remain xed for the entire term,” e News quoted the minis- try o cial as saying.
PLL’s CEO, Adnan Gilani, warned earlier this year that the country’s LNG demand could more than triple from nearly 7 million tonnes in 2018 to as much as 30 million tonnes by 2024.
PLL’s two oating storage and regasi cation units (FSRUs) – BW Integrity and Exquisite – have a combined handling capacity of about 9-10 million tonnes per year of LNG and are running at near full capacity. Demand for LNG is rising in the face of stagnant domes- tic gas production, which edged down 1.51 tcf (42.48 bcm) in nancial year 2012-13 to 1.46 tcf (41.35 bcm) in 2017-18, energy ministry data show.
According to the country’s Oil and Gas Reg- ulatory Authority (OGRA), the power sector consumed 43% of the country’s total available gas in nancial year 2016-17. Rising numbers of residential gas connections, however, means there is insu cient gas supplies, which is creat- ing power shortages. According to one World Bank survey, 66.7% of local businesses perceive power shortages to be a great obstacle to business than corruption, crime or terrorism.
Week 23 23•June 13•2019 w w w . N E W S B A S E . c o m P5
