PLL receives highest-ever bids of up to $31.0566 per MMBtu for 2 spot LNG cargoes
ISLAMABAD – The Pakistan LNG Limited (PLL) has received the highest-ever bids of up to $ 31.0566 per Million British thermal units (MMBtu) for two spot LNG cargoes required to be delivered during the 3rd and 4th weeks of November.
In response to the emergency bids for two LNG Cargoes spot purchase, floated by on November 2, 2021, Pakistan LNG Limited has received three bids for November 19-20 and 26-27 deliveries, official documents reveals. To avert imminent gas crises during ongoing month, caused by the default of ENI and GUNVOR for the November LNG delivery, PLL had floated emergency tenders for spot purchase of LNG cargoes.
Two emergency tenders for spot purchase of LNG had been floated for the delivery windows of November 19-20 and November 26-27. The closing date for the bids was November 5, 2021.Three international bidders including Vitol Bahrain, QP Trading and Total Energies Gas and Power participated in the bidding process.
For November 19-20 window , Vitol Bahrain has offered the contract price of $29.8966 per MMBtu, while for the second window of November 26-27 it has offered $31.0566 per MMBtu. For the same windows, QP Trading has offered $30.0500 per MMBTU and $30.6500 per MMBtu respectively. Total Energies Gas and Power has submitted one bid for November 26-27 window and offered contract price of $30.9600 per MMBtu.
The lowest evaluated bidders identified by PPL for both the windows are Vitol Bahrain and QP Trading. Vitol Bahrian is the lowest evaluated bidder for November 19-20 window with the lowest commercial offer of $ 29.8966 per MMBtu. While for November 26-27 window QP Trading is the lowest evaluated bidders with lowest commercial offer of $30.6500 per MMBtu. The BOD of PLL will give final approval to the lowest evaluated bidders for both the windows.
It is worth mentioning here that earlier the most expensive spot purchases of Pakistan’s history was made by PLL and procured one cargo at $20.2877 per MMBtu for October delivery.
It is also worth to noted that owing to high international spot prices for LNG cargoes, Pakistan’s two long-term agreement signatories including ENI and GUNVOR have willfully defaulted on their commitment for the supply of one each LNG cargo during November, 2021.
Pakistan was supposed to get 11 LNG cargoes during November, which include 7 from long-term agreement with Qatar, one each from the long term contracts with ENI and GUNVOR and two cargoes from spot purchases. However, after the default of ENI and GUNVOR, the number of cargoes decreased to 9 in November from the earlier planned 11 cargoes. To fill the gap the government had launched tenders for two LNG cargoes.