PLL has launched urgent tenders for the import of three LNG cargoes covering the April 27 to May 14 delivery window.
ISLAMABAD:
After securing multiple bids for short-term supply, the board of directors of Pakistan LNG Limited (PLL) on Saturday approved the purchase of a cargo of liquefied natural gas (LNG) from the spot market, scheduled to arrive on April 30.
According to official details, PLL floated urgent tenders for the import of three LNG cargoes covering the delivery period from April 27 to May 14. In response, it received four offers, three of which were declared the lowest for different delivery periods.
For the first delivery window of April 27-30, TotalEnergies submitted the lowest bid, which the PLL board approved at a price of $18.88 per million British thermal units (mmBtu).
The approved cargo, carrying approximately 140,000 cubic meters of LNG, will be delivered ex-vessel (DES) and is expected to arrive in Pakistan on April 30. For subsequent delivery periods, Vitol Bahrain offered the lowest bid of $18.54/mmBtu for the period May 1-7, while OQ Trading submitted the lowest bid of $17.997/mmBtu for the period May 8-14. However, despite being the lowest bids, the PLL board of directors decided not to approve these bids.
PLL had issued the tender amid increased uncertainty in global LNG supply, particularly after Qatar’s reluctance to ship LNG cargoes stranded in the Gulf due to the closure of the Strait of Hormuz.
Three cargoes of Qatari LNG, originally destined for Pakistan, had earlier returned from the vital waterway due to safety concerns, complicating supply arrangements.
Last month, the Oil and Gas Regulatory Authority (Ogra) reported a significant increase of 19 to 22 percent in the price of regasified liquefied natural gas (RLNG), raising it to between $12.50 and $14/mmBtu for distribution by the two Sui gas companies during March.
PLL, one of the key public sector entities responsible for LNG imports, did not import any cargoes last month.
