Gunvor to supply LNG at 12pc of Brent prices

KARACHI: The Swiss-based trading house Gunvor will supply liquefied natural gas (LNG) to state-run Pakistan State Oil (PSO) at prices equivalent to 12.27 percent of average Brent rates for August, 11.8996 percent for September and 11.9163 percent for October, sources said on Monday.
PSO has awarded the supply contracts to Gunvor in a recently issued tender in which all other participants were disqualified. PSO launched a tender to buy four cargoes in May. After receiving the bids, it disqualified EDF, Excelerate, Glencore, Gas Natural Fenosa, Marubeni, Trafigura and Vitol for non-compliance reasons.
Gunvor will supply 143,000 cubic meters of LNG each for August, September and October 2015, Shahid Islam, managing director at PSO told The News.
“The tender was issued and processed as per the PPRA (Public Procurement and Regulatory Authority) rules and the contract was awarded (to Gunvor) accordingly,” said Islam.
Media reports say Gunvor recently reloaded a cargo from Spain and may use these to supply Pakistan.
It may be recalled that Pakistan has already received five consignments of LNG, which Engro Elengy’s floating storage and regasification unit terminal Exquisite carried from Qatar to Port Qasim Terminal.
On the urgency of issuing tender for LNG supply for July, Islam informed that the company had received two bids for this.
The latest tender from Pakistan for two cargoes for July is expected to be awarded to Trafigura, traders said, although results are not expected to be officially announced until Wednesday.
Earlier this week, Trafigura had bought a cargo from Australia’s Pluto export plant for delivery into its newly acquired storage capacity at Singapore’s import terminal in mid-July. The trading house is also set to pick up a cargo from Britain’s Isle of Grain import terminal, which was sold to it by British utility Centrica.
Additionally, PSO invited bids from the interested parties for the supply of 12 consignments of 50,000 metric tons of motor gasoline each in August, September and October.
According to the details, two such consignments need to be delivered in August, five each in September and October.
The oil marketing company also invited bids for the supply of 60,000mt of low sulphur furnace oil in September and two of the same volume each in October.