ISLAMABAD: An international commodity supplier, the OQ Trading has submitted a lowest commercial offer of US$ 18.4600 per Million British Thermal Unit (MMBTU) for supply of a cargo of liquefied natural gas (LNG) in the month of January 2024.
Pakistan LNG Limited (PLL), a state-owned company, which procures LNG from the international market, issued the tender on Monday (20th November) and was seeking delivery of one LNG cargo at Port Qasim, Karachi on January 8 to 9. The date and time of bid closing and opening was 24th November, 2023.
As per details, PLL has received four bids for supply of one LNG cargo from the global commodity suppliers. And, after qualifying in the bidding round of technical evaluation, the OQ Trading submitted the lowest bid of US $18.46 per MMBTU, Vitol Bahrain bid was of US $18.58, Qatar Energy Trading made a bid of US$19.43, and the Trafigura submitted a bid of $19.64.
The lowest bid received from the international market for a cargo in January was $18.46 per MMBTU.
PLL has been mandated by the Government of Pakistan (GoP) to import and sell the natural gas, the LNG and re-gasified LNG.
PLL procures LNG from the international markets and makes arrangements for the supply of gas to the end users, managing the whole supply chain of LNG in the country.
Dependent on gas for energy purposes especially the power generation, Pakistan has been struggling hard to ensure the procurement of spot cargoes of LNG after the price of commodity witnessed significant increase last year after the Russia’s invasion of Ukraine.
It is pertinent to mention that Pakistan has two long-term supply deals with Qatar, one signed in 2016 for 3.75 million metric tons of LNG a year, and another signed in 2021 for three million metric tons a year. It also has an annual portfolio contract with ENI for 0.75 million metric tons a year. And the caretaker government has been making all out efforts to overcome expected gas shortage in the approaching winter season.
Besides, back in September, PLL issued a tender seeking two LNG cargoes for the month of December. PLL awarded the tender to commodities trader Vitol.
In June, PLL failed to secure offers for six cargoes on a DES basis for October and December delivery to Port Qasim.