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Posted by admin in ENERGY SCAMS OF NAWAZ SHARIF on April 26th, 2015
ISLAMABAD: Amid legal vacuum surrounding the sale of around 140,000 tonnes of imported liquefied natural gas (LNG) to a few bulk consumers, a private company’s bid to arrange import of 20 per cent cheaper commodity is reported to have been blocked.
Informed sources told Dawn the Pakistan State Oil (PSO) did not have an LNG marketing licence but it had not only imported but was selling the product to various consumers, including fertiliser plants, power plants and gas companies.
“This is illegal,” said a former petroleum secretary.
A senior government official said the CNG industry represented by Universal Gas Company had struck a deal with an LNG supplier at less than $7 per million British thermal units (mmbtu) but it was not given clearance by the government and asked to route through PSO. “The final price differential between LNG imported by PSO and the CNG sector amounted to more than $2.5 per mmbtu,” said the official.
The LNG policy was approved in 2011 which has neither been amended nor suspended so far, but the consumers of regasified LNG (RLNG) were under pressure to import LNG through PSO in violation of section 10 of the policy. This strangely results into 45pc price build-up of RLNG in the shape of charges and profits of domestic entities.
An official of a fertiliser company said that even though the Sui Northern Gas Pipelines Limited (SNGPL) was providing domestic natural gas to Pak-Arab Fertiliser, which had enabled first LNG cargo by providing letter of credit, the invoices for RLNG to Pak-Arab were issued directly by the Sui Southern Gas Company Limited (SSGC) even though the Multan-based fertiliser plant was not a consumer of SSGC. This is also a legal issue that would need to be covered post-facto by the Oil and Gas Regulatory Authority (Ogra) or the cabinet.
In fact, the imported RLNG belonged to the Pak-Arab Fertiliser which paid for it but did not get full quantities as it was partially diverted by PSO to other consumers, for some time to Dawood Agritech and some IPPs. This is not allowed under Third Party Access (TPA) rules for LNG.
A petroleum ministry official, who has worked on three major LNG import projects so far, told Dawn that the latest RLNG price at Karachi was comparatively higher than envisaged under the two previous import attempts.
He said that first cargo’s RLNG price at Karachi has worked out at 17.56pc of the Brent crude. The Brent price varied between $57-60 per barrel over the last few days and RLNG price at Karachi has been set at $10.42 per mmbtu and $14.2 per mmbtu at power plant’s gate.
In contrast, the RLNG price of 4Gas, which became a victim to court cases during early days of the PPP government, had averaged 12.5pc of Brent. Another bid that fell victim to competing bidders — Gasport, Global and Engro — and then struck down again by the courts at the fag end of PPP tenure had also priced RLNG at Karachi at 13.9pc of Brent.
The official said the price of light sulphur furnace oil (LSFO) price for Kot Addu Thermal Power Company, according to regulatory approval, has stood at $10.85 per mmbtu against RLNG’s estimated price of $14.3 per mmbtu. This proved that the imported RLNG was costlier than furnace oil.
As if it were not enough, the RLNG price would further go up in view of a surprise decision of the petroleum ministry and PSO to offload Engro’s Floating Storage and Regasification Unit (FSRU) swiftly and use it as an LNG carrier to go back and bring another LNG cargo. This would result in eight days of capacity payments at the rate of $272,000 per day along with 3-4 times higher transportation cost (compared to LNG ship) to the FSRU even though it would not process LNG to become part of the price.
The sources said that the government was now trying to get out of these legal complexities by allowing a group of private investors to set up a special-purpose vehicle (SPV) to import LNG through spot purchases.
The group comprised a leading industrialist-cum-banker and a broker-turned-industrialist having directorships on the board of directors of gas companies that would have influence over LNG import, its distribution and partly consumption but the higher costs would be shared by all the consumers at the end of the day.
Published in Dawn, April 15th, 2015
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It is noteworthy that during his visit to Balochistan, Chief of Army Staff Gen. Raheel Sharif on April 15, this year warned foreign forces and spy agencies against destabilizing Pakistan by supporting insurgents in Balochistan. Gen. Raheel elaborated, “Army will continue supporting the Balochistan government till terrorism is wiped out…those found involved in funding and facilitating terrorists will be dealt with iron hands.”
During the historical visit of the Chinese President Xi Jinping to Pakistan, on April 20, this year, he and Pakistani Prime Minister Nawaz Sharif signed 51 agreements for cooperation in various fields, related to China-Pakistan Economic Corridor (CPEC), energy, infrastructure, agriculture, research, technology, education etc.
The establishment of CPEC between deep Gwadar seaport of Balochistan and the historic Silk Road city in western regions-Xinjiang of China will connect Gilgit-Baltistan through Khunjerab Pass. Beijing would also build an international airport at Gwadar, while the roads infrastructure in Gwadar would link the communication network of rest of the country to facilitate transportation of goods.
When Gwadar seaport becomes fully operational, it would connect the landlocked Central Asian states with rest of the world. Being the commercial hub, the port is likely to increase volume of trade, bringing multiple economic and financial benefits to Pakistan like the Suez Canal which changed the destiny of Egypt when Israel returned it to the former. It will enable high-volume cargo vessels to move in the major oceans. Gwadar project will not only uplift the impoverished people of Balochistan by providing thousands of employment opportunities and is likely to develop whole the province by redressing their grievances. The resulting prosperity in the province would trickle down to the Baloch people and damp the separatist sentiments, which the hostile elements, supported by anti-Pakistan powers do not want.
Recall, when during the Musharraf regime, Islamabad initiated the construction of Gwadar deep-seaport in Balochistan in March 2002 with Chinese assistance, sirens went off in the capitals of foreign countries, especially the US, India and Israel which took it as a threat to their global and regional plans.
Located on the southwestern coast of Pakistan, Balochistan’s Gwadar seaport is close to the Strait of Hormuz from where more than 17 million barrels of oil passes every day. Its ideal location among three key regions, South Asia, the oil-rich Middle East, and oil and gas-resourced Central Asia has further increased its strategic significance. Its development has shifted the Great Game of Central Asia to Pakistan. Hence, sirens still continue alarming in the foreign countries.
Besides, Balochistan’s abundant mineral resources like gas, coal and gold, entailing Pakistan’s close ties with China also pinches the eyes of the US, India, Israel and some western countries which intend to destabilize Pakistan for their collective aims.
Therefore, major challenge to Pak-China strategic alliance is that with the tactical support of American CIA and Israeli Mossad, Indian RAW has continuously been assisting the Baloch separatist groups and Baloch Sub Nationalists to conduct subversive acts—and using terrorist elements in Balochistan to threat Pak-Chinese interest in the development of China-Pakistan Economic Corridor. And, Afghanistan has become a hub from where external secret agencies have been funding and arranging subversive activities in other parts of Pakistan—especially in Balochistan through their affiliated militant groups at the cost of Pakistan, China and Iran. In the past few years, they abducted and killed many Chinese and Iranian nationals in Pakistan.
It is of particular attention, that Indian former Army Chief Gen. VK Singh openly admitted that during his tenure, he supervised special army unit, Tactical Support Division (TSD) on the instructions of the then defence minister to sponsor acts of sabotage in Pakistan, particularly Balochistan.
As regards the deteriorating situation of Balochistan, everyone knows that Balochistan Liberation Army (BLA) and their affiliated outfits including another group, Jundollah (God’s soldiers) which have been fighting for secession of the province gets logistic support from RAW and other anti-Pakistan spy agencies—these militants kidnapped and killed many innocent people and the security personnel in the province. They also massacred many persons through suicide attacks, bomb blasts, targeted killings and sectarian violence. Therefore, they are responsible for dumped bodies and extrajudicial killings in the province. On a number of occasions, these insurgent groups claimed responsibility for their subversive acts. The main aim behind is to create unrest in Balochistan and to discourage Beijing for the development of Gwadar port.
While, in May, 2013, a day before Chinese Premier Li Keqiang arrived in Islamabad; Chinese engineers being driven through Clifton Block-1 in Karachi escaped a major bomb attack. Taking note of the foreign powers’ anti-Pakistan designs, during the visit of Chinese President Xi Jinping, Islamabad made extraordinary security arrangements.
It is notable that a Gallup survey of the UK official body, DFID, conducted on July 20, 212, had disclosed that the vast majority of the Baloch people oppose the idea of an independent Balochistan.
As a result of the general elections 2013, the government led by the nationalist leader Chief Minister Balochistan Dr. Abdul Malik Baloch was established in Balochistan, while on December 7, 2013; local bodies elections were largely held in a peaceful manner in the province. These elections proved that majority of the Baloch are loyal to the federation, and have rejected the case of separatists, being projected by external forces which are weakening Pakistan by supporting the anti-state elements in Balochistan.
It is noteworthy that during his visit to Balochistan, Chief of Army Staff Gen. Raheel Sharif on April 15, this year warned foreign forces and spy agencies against destabilizing Pakistan by supporting insurgents in Balochistan. Gen. Raheel elaborated, “Army will continue supporting the Balochistan government till terrorism is wiped out…those found involved in funding and facilitating terrorists will be dealt with iron hands.”
In fact, Gen. Raheel Sharif was compelled to expose conspiracy against Pakistan after the gunmen killed 20 laborers in Turbat district of Baluchistan in the deadliest attack on April 11, who were working at a dam construction site.
It is worth-mentioning that during China’s visit, Gen. Raheel Sharif, on January 25, 2015, China’s Vice Chairman of Central Military Commission Gen. Fan has assured that China will assist Pakistan in every challenge.
Nevertheless, foreign entities shall pose a major challenge to Pak-China strategic alliance through terror-acts. Hence, the intelligence agencies and security forces of both the countries must be well-prepared to cope with these elements.
It is noteworthy that during his visit to Balochistan, Chief of Army Staff Gen. Raheel Sharif on April 15, this year warned foreign forces and spy agencies against destabilizing Pakistan by supporting insurgents in Balochistan. Gen. Raheel elaborated, “Army will continue supporting the Balochistan government till terrorism is wiped out…those found involved in funding and facilitating terrorists will be dealt with iron hands.”
Sajjad Shaukat writes on international affairs and is author of the book: US vs Islamic Militants, Invisible Balance of Power: Dangerous Shift in International Relations
Email: sajjad_logic@yahoo.com
Posted by admin in China, CHINA -PAKISTAN FRIENDSHIP, CHINA SHINING, China- Global Security, China-Pakistan Friendship & Brotherhood, Foreign Policy on April 26th, 2015
Now how do you top this as a geopolitical entrance? Eight JF-17 Thunder fighter jets escorting Chinese President Xi Jinping on BOARD an Air China Boeing as he enters Pakistani air space. And these JF-17s are built as a China-Pakistan joint project.
Silk Road? Better yet; silk skyway.
Just to drive the point home – and into everyone’s homes – a LITTLE further, Xi penned a column widely distributed to Pakistani media before his first overseas trip in 2015.
He stressed, “We need to form a ‘1+4′ cooperation structure with the Economic Corridor at the CENTER and the Gwadar Port, energy, infrastructure and industrial cooperation being the four key areas to drive development across Pakistan and deliver tangible benefits to its people.”
Quick translation: China is bringing Pakistan into the massive New Silk Road(s) project with a bang.
The Chinese Foreign Ministry, also on cue, stressed that Pakistan would be in the frontline to benefit from the $40 billion Silk Road Fund, which will help to finance the Silk Road Economic Belt and Maritime Silk Road projects; or, in Chinese jargon, “One Belt, One Road”, that maze of roads, high-speed rail, ports, pipelines and fiber optics networks bound to turbo-charge China’s LINKS to Europe through Russia, Central Asia and the Indian Ocean.
The Silk Road Fund will disburse funds in parallel with the new Asian Infrastructure INVESTMENT BANK (AIIB), which has already enticed no less than 57 countries. China’s assistant foreign minister, Liu Jianchao, has not delved into detailed numbers, but he assures China “stands ready to provide financing.”
So no wonder Pakistani media was elated. A consensus is also fast emerging that China is becoming “Pakistan’s most important ally” from either West or East.
Beijing’s CAREFULLY calibrated commercial offensive mixing Chinese leadership concepts such as harmonious society and Chinese dream with a “win-win” neighborhood policy seduces by the numbers alone: $46 billion in investment in Pakistan ($11 billion in infrastructure, $35 billion in energy), compared to a U.S. Congress’s $7.5 billion program that’s been in place since 2008.
The meat of the matter is that Washington’s “help” to Islamabad is enveloped in outdated weapons systems, while Beijing is investing in stuff that actually benefits people in Pakistan; think of $15.5 billion in coal, wind, solar and hydro energy projects bound to come ONLINE by 2017, or a $44 million optical fiber cable linking China and Pakistan.
According to the Center for Global Development, between 2002 and 2009 no less than 70% of U.S. aid was about “security” – related to the never-ending GWOT (global war on terror). As a Pakistani analyst wrote me, “just compare Xi’s vision for his neighbors and the history of AMERICA in Latin America. It is like the difference between heaven and hell.”
That “X” factor
At the heart of the action is the China-Pakistan Economic Corridor (CPEC), whose embryo had already been discussed when Prime Minister Nawaz Sharif visited Beijing in the summer of 2013. The economic corridor, across 3,000 km, will LINK the port of Gwadar, in the Arabian Sea, not far from the Iranian border, with China’s Xinjiang.
China is already in Gwadar; China Overseas Port Holding Company is operating it for two years now, after helping to build the first phase. Gwadar formally opens before the end of the month, but a first-class highway and railway linking it to the rest of Pakistan still need to be built (mostly by Chinese companies), not to mention an international airport, SCHEDULED to open by 2017.
All this action implies a frenzy of Chinese workers building roads, railways – and power plants. Their security must be assured. And that means solving the “X” factor; “X” as in Xinjiang, China’s vast far west, home to only 22 million people including plenty of disgruntled Uyghurs.
Beijing-based analyst Gabriele Battaglia has detailed how Xinjiang has been addressed according to the new guiding principle of President Xi’s ethnic policy. The key idea, says Battaglia, is to manage the ethnic conflict between Han Chinese and Uyghurs by applying the so-called three “J”: jiaowang, jiaoliu, jiaorong, that is, “inter-ethnic contact”, “exchange” and “mixage”.
Yet what is essentially a push towards assimilation coupled with some economic incentives is far from assured success; after all the bulk of Xinjiang’s day-to-day policy is conducted by unprepared Han cadres who tend to view most Uyghurs as “terrorists”.
Many of these cadres identify any separatist stirring in Xinjiang as CIA-provoked, which is not totally true. There is an extreme Uyghur minority which actually entered Wahhabi-driven jihadism (I met some of them in Masoud’s prisons in the Panjshir valley before 9/11) and has gone to fight everywhere from Chechnya to Syria. But what the overwhelming majority really wants is an economic shot at the Chinese dream.
The Pakistani counterpart to Xinjiang is Balochistan, inhabited by a little over 6 million people. There have been at least three different separatist factions/movements in Balochistan fighting Islamabad and what they call “Punjabis” with a vengeance. Former provincial minister Jaffar Khan Mandokhel, for instance, is already warning there will be a “strong reaction” across Balochistan to changes in the corridor’s routes, which, he says, “are meant to give maximum benefit to Punjab, which is already considered the privileged province.” Islamabad denies any changes.
The corridor is also bound to bypass most of the key, northwestern province of Khyber Pakhtunkhwa. Opposition political star Imran Khan – whose party is on top in Khyber – has already condemned it as an injustice.
Beijing, for its part, has been very explicit to Islamabad; the Pakistani Taliban must be defeated, or at least appeased. That explains why since June 2014 the Pakistani army has been involved in a huge aerial bombing campaign – Zarb-e Azb – againt the Haqqani network and other hardcore tribals. The Pakistani army has already set up a special division to take care of the corridor, including nine battalions and the proverbial paramilitary forces. None of this though is a guarantee of success.
Karakoram or bust
It will be absolutely fascinating to watch how China and Pakistan, simultaneously, may be able to keep the peace in both Xinjiang and Balochistan to assure booming trade along the corridor. Geographicaly though, this all makes perfect sense.
Xinjiang is closer to the Arabian Sea than Shanghai. Shanghai is twice more distant from Urumqi than Karachi. So no wonder Beijing thinks of Pakistan as a sort of Hong Kong West, as I examined in some detail here.
This is also a microcosm of East and South Asia integration, and even Greater Asia integration, if we include China, Iran, Afghanistan, and even Myanmar.
The spectacular Karakoram highway, from Kashgar to Islamabad, a feat of engineering completed by the Chinese working alongside the Pakistan Army Corps of engineers, will be upgraded, and extended all the way to Gwadar. A railway will also be built. And in the near future, yet another key Pipelineistan stretch.
Pipelineistan is linked to the corridor also in the form of the Iran-Pakistan (IP) gas pipeline, which Beijing will help Islamabad to finish to the tune of $2 billion, after successive U.S. administrations relentlessly tried to derail it. The geopolitical dividends of China blessing a steel umbilical cord between Iran and Pakistan are of course priceless.
The end result is that early in the 2020s China will be connected in multiple ways practically with the mouth of the Persian Gulf. Large swathes of massive China-Europe trade will be able to avoid the Strait of Malacca. China will be turbo-charging trade with the Middle East and Africa. China-bound Middle East oil will be offloaded at Gwadar and transported to Xinjiang via Balochistan – before a pipeline is finished. And Pakistan will profit from more energy, infrastructure and transit trade.
Talk about a “win-win”. And that’s not even accounting for China’s thirst for gold. Balochistan is awash with gold, and there have been new discoveries in Punjab.
New Silk Road action is nothing short than frantic. The Bank of China is already channeling $62 billion of its immense foreign exchange reserves to three policy banks supporting New Silk Road(s) projects; $32 billion to China Development Bank (CDB) and $30 billion to Export-Import Bank of China (EXIM). The Agricultural Development Bank of China (ADBC) will also get its share.
And it’s not only Pakistan; the five Central Asian “stans” – rich in oil, gas, coal, agricultural land, gold, copper, uranium – are also targeted.
There’s a new highway from Kashgar to Osh, in Kyrgyzstan, and a new railway between Urumqi and Almaty, in Kazakhstan. We may be a long way away from the new high-speed Silk Rail, but trade between, for instance, the megacities of Chongqing or Chengdu in Sichuan with Germany now moves in only 20 days; that’s 15 days less than the sea route.
So it’s no wonder a “special leading group” was set up by Beijing to oversee everything going on in the One Road, One Belt galaxy. The crucial action plan is here. Those who’re about to go silk, we salute you.
Posted by admin in ISRAEL'S MASSIVE NUCLEAR-Dangerous to Global Peace, STRATEGY AND WAR GAMING, Zionist Enemy on April 15th, 2015
Israeli Air Force Commander Major General Amir Eshel (R) with American ambassador Dan Shapiro,A Zionist, as Eshel becomes the new commander of the Israeli Air Force, May 14, 2012. Photo by Yossi Zeliger/FLASh90
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