ISLAMABAD: Two international companies have clinched the biggest ever LNG supply deal of almost $7.2 billion for 5 to 15 years under which Pakistan will be having 240 LNG shipments starting from July 1, a senior official of Pakistan LNG Limited told The News. LNG Ltd opened the bids here on Thursday and declared the ENI for 15-year LNG supply contract and Gunvor for 5-year contract as winner parties. ENI has won the 15-year tender at the price of 12.29 percent of the Brent under which it will provide 180 LNG cargoes. The ENI’s bid was found the lowest among the five shortlisted bidders. Similarly, Gunvor has bagged five-year LNG supply contract under which 60 LNG cargoes will be provided to Pakistan at the price of 11.6247 percent of the Brent which is the lowest one among the 10 bids. Federal Minister Shahid Khaqan Abbasi, when contacted, confirmed the development. “We are satisfied with the bid offered by Gunvor for 5- year LNG supply contract. However, the lowest bid by ENI is not up to the mark,” the minister argued. “Our consultant would evaluate the ENI bid for 15 years and then the government will decide as to whether the contract is awarded to ENI or not. We have the option for government- to-government LNG deal and we may not accept the bid of ENI as it is at higher side,” the minister said. Pakistan LNG Ltd (PLL) had floated a mid- and a long-term tender to purchase combined 240 shipments of liquefied natural gas (LNG). As per the official website of Pakistan LNG Ltd, country has emerged to become a major gas importer. According to the official documents showing the result of bids available with The News, ENI has beaten up five international competitors in the bidding process by submitting its lowest bid at 12.29 percent of the Brent. However, other bids which PLL received include the 13.3699 percent of the Brent from Trafigura, 12.7 percent of Brent from Gunvor, 12.9 percent from Petronas and 12.599 percent from Shell.
Coming to the five-year LNG contract, Gunvor has emerged as the winner company among the shortlisted bids of 10 companies. According to the details, for five year LNG deal, Glencore submitted its bid with price of 14.4865 percent of the Brent, Gunvor 11.6247, ENI 12.2900, Gas Natural 13.29, Shell 12.3000, Trafigura 12.4874,Gazprom 12.4700, Petronas 12.900, Engie 12.39 and CNOOC came up with the bid at price of 12.8280 percent of the Brent. Pakistan has ploughed billions of dollars into LNG infrastructure, including the construction of a second LNG import terminal and pipelines linking Karachi with Lahore in the Punjab region, the nation's industrial heartland. The current crop of tenders are a small part of Pakistan's projected demand as the country works to bring two more import terminals online within the next couple of years, making it a potent force in global gas markets. The country first began buying LNG last year and has already contracted supplies from trading firm Gunvor and Qatargas, the world's biggest LNG producer. Cheap gas is tempting out new importers from the Middle East to Africa and Asia, helping stave off a deeper price rout hurting producers'' bottom lines.