ISLAMABAD - In response to emergency tender for the procurement of three LNG cargoes for a period from 8 to 18 January, the government has received four bids for the import of two LNG cargoes with the price ranging from 25.91 percent to 39.62 percent of Brent oil price.
Pakistan LNG Limited (PLL) has invited bids for three cargoes for 8-9 January, 2021 slot, 12-13 January slot and 17-18 January, 2021 slot, however four companies have submitted bids for only two slots and no one submitted any bid for the 12-13 January slot, official sources told The Nation here on Monday.
For January 8-9 January 2021 slot DXT has offered 30.58 percent of Brent ($15.28 per MMBTU), similarly Trafigura has offered 39.62 percent of Brent oil ($18.80 per MMBTU). For January 12-13 January 2021 slot no bid was received. For January 17-18 January 2021 slot ENOC has offered 25.91 percent of Brent ($12.95 per MMBTU) while Trafigura has offered price which is 31.92 of the Brent ($ 15.95 per MMBTU). Under a long-term agreement struck by the PML (N) government, Qatar is providing LNG to Pakistan at 13.37 per cent of Brent which at the current Brent market rate is around $6.62 per MMBTU.
It is worth to mention here that after failing to get any bid for the procurement of three liquefied natural gas (LNG) cargoes between Jan 8 and Jan 18, Pakistan LNG Limited (PLL) had floated an emergency tender for the spot purchase of three cargoes for the month of January.
To fill the supply-demand gap and avoid severe gas shortage during the month of January the procurement of LNG on an urgent basis is required, therefore, it has been decided to float fresh emergency tenders for the import of three cargoes, official sources said.
Initially, it was planned to import total of 14 cargoes, including eight from long-term agreements and six from spot purchases, for the month of January, however, the PLL was able to manage the procurement of only 11 cargoes, the source said.
So far 11 cargoes are confirmed which include eight from the long-term agreements with Qatar, Gunvor and ENI while three cargoes will be procured through spot purchases. For the remaining three cargoes fresh emergency tender was floated with the approval of the PPRA, said the source adding there was a clause in PPRA rules which allowed procurement during emergency situation. In response to emergency tender, three companies have submitted four bids.
It is also worth to note that in November, Pakistan LNG Limited (PLL) had issued tenders for six cargoes for delivery between Jan 8 and Feb 1. On December 10, 2020 the bids were opened, however, no bids were received against the tenders for the first three slots between Jan 8 and Jan 18.
The Pakistan LNG Limited (PLL) had received high bids from 15.3209 to 33.9499 per cent of Brent for the supply of LNG in January 2021, which was much higher than the price of the LNG supplied under long-term agreements with different suppliers.
Pakistan’s total re-gasification capacity is around 1.2 bcfd and beside supply from Qatar, Gunvor and ENI, LNG is also being purchased from the open market.