ISLAMABAD-Pakistan Friday attracted overwhelming response from the international bidders as the country received bids from four companies for the supply of single LNG cargo from spot market at up to $19.64/mmBtu during January 2024.
In response to Pakistan LNG Limited (PLL) tender for a liquefied natural gas (LNG) cargo for delivery in January, four international companies including OQ Trading (formerly known Oman Trading International), Vitol, QatarEnergy Trading and Trafigura have responded for January 8 to 9 delivery.
As per the notice of the PLL, OQ Trading offered a cargo at $18.46 per million British thermal units (mmBtu), Vitol offered $18.58/mmBtu, QatarEnergy Trading $19.43/mmBtu and Trafigura $19.64/mmBtu.
The OQ Trading which has offered $18.46 per million British thermal units (mmBtu) has been shortlisted as lowest evaluated bidder, said PLL. The final decision for accepting or rejecting the bids will be announced later.
To meet the gas demand in the winter season, last week, the state owned Pakistan LNG Limited (PLL) had invited bids from international suppliers for the delivery of one LNG cargo from spot market for January 2024.
In the tender for LNG procurement, invited by Pakistan LNG Limited, a company of Petroleum Division, had called international companies for LNG supply bids for January 8 to 9 delivery. The tender of PLL is for the supply of one LNG cargo on a delivered-ex-ship (DES) basis to Port Qasim in Karachi in January. PLL has received four bids on November 24 and it was opened the same day.
It is worth noting that to ease the gas shortage during the peak winter month of December, the caretaker had already procured cargo from the international spot market.
After several fail attempts in getting bids for over one year, Pakistan LNG Limited had finally succeeded in receiving three bids, in October, from two international bidders for LNG supply from spot market for December 7 to 8 and December 13 to 14 deliveries.
For the first window of December 7 to 8 two bidders namely Trafigura Pte Limited, and Vitol Bahrain have offered two bids. Trafigura offered $18.39/mmBtu, while Vitol offered $15.97/mmBtu for the deliveries of LNG for 7 to 8 December window.
For the second window of December 13 to 14, single bid was received from Trafigura Pte Limited at $19.39/mmBtu.
For the first window of December 7 to 8, Vitol Bahrain has been selected being as lowest bidder at $15.97/mmBtu.
It is also worth to note that since July 2022, Pakistan had to scrap several tenders for the procurement of LNG from the international market owing to its high price or no response from the international bidders. The international companies have almost stopped selling LNG to Pakistan as the country was on the verge of default and high LNG prices in the international spot market. However, since last two rounds of bidding for LNG spot cargoes it seems that the confidence of the international bidders has increased on the country’s financial health.
Source: nation.com.pk
