Thursday June 13, 2024

Pakistan gets lowest bid on five LNG ships

By Khalid Mustafa
February 01, 2019

ISLAMABAD: Pakistan on Thursday got tremendous response from world class companies with 30 bids showing 600 percent over-subscription of bid documents for five additional LNG cargoes to meet the country’s energy demand for the months of March and April.

It will pave the way for saving $15-20 million as the lowest cost of LNG from bidders stand at 11.87 percent of the Brent if compared with the cost of LNG from Qatar under 15-year agreement that stands at 13.37 percent of the Brent.

Pakistan LNG Limited (PLL) gave the advertisement in December 2018, seeking bids for additional five LNG cargoes, two for March and three for month of April. The transparent, efficient working of PLL with lowering of period to 15 days of bid validity has played a vital role in alluring 600 percent over-subscription of bid documents by the international companies.

So much so, Stephen Stapczynski, Editor Energy in Bloomberg also came up with praise saying, “An excellent turn out by the potential bidders today (Thursday).” He said that PLL is the most transparent entity and has set the standard.

Adnan Gillani, Managing Director, PLL, said that his company has been acknowledged at international level just because of the professional and transparent working and world class standard of the human capital in the company. “Keeping in PPRA rules and timely demand of LNG, we gave the tender for five additional LNG cargoes for the months of March and April, 2019 and got extraordinary response because of the best bid documents prepared by PLL and bids’ validity only for 15 days and also because of timing of the bids in transparent manner in the global market paved the way for best prices of LNG at 11.87 percent of the Brent.”

The eight companies have been found technically qualified which came up with their bids include DXT Commodity, Gunvor International, Peronas, Vitol, Trafigura, ENI SpA, SOCAR and Glencore. Out of them Petronas came up with the offer of 4 cargoes at price of 11.87 percent of the Brent for 13-14 April 2019, SOCAR came up with offer of five cargoes at price of 11.8724 percent for 26-27 April, Gunvor International came up with 1 cargo on 3-4 March, 2019 at a price of 12.8211 percent, Vitol Bahrin E.C came up with lowest offer at 12.5933 percent for two cargoes on 17-18 March, and SOCAR turned up at 12.2008 percent for three cargoes on 2-3 April, 2019.