Bids invited for five LNG cargoes

KARACHI: State-owned Pakistan LNG Limited (PLL) on Wednesday invited bids from international suppliers for supply of five liquefied natural gas (LNG) cargoes of 140,000 cubic meters each for March-April on a delivered ex-ship basis at Port Qasim.

The first delivery window is from March 3-4, the second from March 17-18, third from April 2-3, fourth from April 13-14 and the fifth from April 26-27 2019 for spot purchase. The bids will be opened on January 30.

PLL invited bids for three 140,000 cubic meters of LNG supplies in its last tender in November last year. Pakistan is facing severe gas shortages this winter even after the country became the sixth largest LNG market in recent years with two LNG facilities of 1.2 billion cubic feet/day established in the last government of Pakistan Muslim League (Nawaz). The re-gasification capacity is equivalent to approximately 34 million cubic meters –, but the current handling is less than one bcfd. The government planned to install more terminals with the private sector investment.

Six additional LNG import projects have been proposed for Pakistan by ExxonMobil, Shell, Trafigura, Total, Mitsubishi and Bahria Foundation. Most are planned for Port Qasim locations. If only four of the new schemes come to fruition, annual LNG deliveries to the country could reach 30 million tons by 2025.

Industrial users as well as compressed natural gas station owners have been agitating against supply cuts while trade bodies have been demanding of the government for uninterrupted gas supply.

Pakistan relies on natural gas to meet almost 50 percent of its energy needs but its proven gas reserves have dwindled in recent years, as consumption has outweighed new discoveries. The country’s Oil and Gas Regulatory Authority said growing number of gas customers is placing a severe strain on its infrastructure and affecting the availability of the fuel.

An official said pipeline capacity is also becoming a challenge. With all imports coming into the southern ports and major consumer hubs in the north of country, the government needs to facilitate capacity allocations in the existing grids, and expeditiously execute new pipeline projects.