ISLAMABAD: Pakistani conglomerate Engro Corp. Ltd. said on Friday it had “no obligation” to renegotiate a contract with the government for imported liquefied natural gas (LNG), a day after the new petroleum minister said it would seek new terms.
A spokesman for Engro said the total contract, to process and supply up to 600 million cubic feet of LNG per day for 15 years, is currently worth about $228,000 per day or about $83 million per year.
Engro’s stance sets up a potential conflict with the new government of Prime Minister Imran Khan, who has promised to scrutinize for corruption all deals made by the previous administration of ousted premier Nawaz Sharif.
Engro said in a statement that 2013 bidding for its Karachi terminal, Pakistan’s first, was done in an “auditable and transparent” tender process. The terminal came into operation in 2015.
“The government does not have a contractual right to reopen/renegotiate its terms and we are accordingly under no obligation to renegotiate the same,” the firm said in a statement. It also said the government was miscalculating its net profits from the venture.
Petroleum Minister Ghulam Sarwar Khan said on Thursday that the government would seek to renegotiate two LNG terminal deals, saying the previous government had agreed to pay too much.
He cited a contractual clause allowing for renegotiation with mutual consent but hinted the government would take other action if Engro refused.
“If they don’t come to renegotiation, then the further remedies that exist, we will definitely avail them,” the minister said.
He did not name the company involved in the second LNG contract. It was unclear whether he was speaking of Pakistan’s other completed terminal or one of several new ones planned.
The rapid adoption of LNG infrastructure has made Pakistan one of the industry’s fastest-growing markets in Asia, sparking interest from the world’s major energy producers and traders.
It also helped ease electricity outages of up to 12 hours per day that had crippled industry and disrupted daily life for the population of 208 million people.
Prime Minister Khan, however, is scrutinizing the deals. While in opposition, the former cricket star spearheaded a campaign accusing Sharif of corruption that led to the Supreme Court removing him from office last year.
Sharif was convicted by an anti-corruption court and sentenced to 10 years in prison in July, just ahead of elections won by Khan.
The three-time premier denies wrongdoing.
Sharif’s former petroleum minister, Shahid Khaqan Abbasi, who became prime minister after Sharif was ousted, is also under investigation by the state anti-corruption body over an unnamed LNG deal. Abbasi has denied any wrongdoing.
Pakistan’s Engro says “no obligation” to renegotiate LNG contract
Pakistan’s Engro says “no obligation” to renegotiate LNG contract
- A spokesman for Engro said the total contract, to process and supply up to 600 million cubic feet of LNG per day for 15 years, is currently worth about $228,000 per day or about $83 million per year
- The rapid adoption of LNG infrastructure has made Pakistan one of the industry’s fastest-growing markets in Asia, sparking interest from the world’s major energy producers and traders
Pakistan U19 to open tri-series against Afghanistan on Saturday in Zimbabwe
- Pakistan enter the tournament as U19 Asia Cup champions after beating India by 191 runs in Dubai
- The tri-series is seen as key preparation for next month’s U19 World Cup in Zimbabwe and Namibia
ISLAMABAD: Pakistan’s under-19 cricket team will begin their tri-series campaign against Afghanistan on Saturday in Harare, using the tournament as a key preparation for next month’s ICC Men’s U19 World Cup co-hosted by Zimbabwe and Namibia.
Pakistan, the reigning ACC Men’s U19 Asia Cup champions, are competing in the 50-over tri-series alongside Afghanistan and hosts Zimbabwe, with each team playing the others twice before the top two advance to the final on Jan. 6.
Pakistan won the eight-team Asia Cup in Dubai earlier this month, beating India by 191 runs in the final, and will play a minimum of four matches in the tri-series, starting at Harare Sports Club on Saturday.
“The Asia Cup was a good win for us and the players showed great morale and intensity,” Pakistan captain Farhan Yousaf said, according to the Pakistan Cricket Board (PCB). “The tri-series is very important for the players and will help us find the right combinations ahead of the ICC Men’s U19 World Cup.”
Pakistan will face Zimbabwe on Dec. 29 before meeting Afghanistan again on Jan. 2, followed by a second match against the hosts on Jan. 4. Matches will be played across venues in Harare, including Harare Sports Club, Prince Edward School and Sunrise Sports Club.
The tri-series is being seen as an important warm-up ahead of the U19 World Cup, which will be held from Jan. 15 to Feb. 6. Pakistan are placed in Group C and will play all their group-stage matches in Harare.
“The conditions here are similar and will be beneficial for our World Cup preparations,” Yousaf said. “Both teams in the tournament are strong and competitive and we respect every opposition as we look forward to a competitive event.”
Pakistan will open their World Cup campaign against England on Jan. 16, followed by matches against Scotland and Zimbabwe, with the Super Six stage beginning on Jan. 25 and the final scheduled for Feb. 6 at Harare Sports Club.
