Socar Trading wins first bid to deliver Brent Crude in Dec

KARACHI: Pakistan has granted Geneva-based Socar Trading the bid to deliver the first cargo of Brent Crude on December 3-4, 2020, it was learnt on Tuesday.

State-owned Pakistan LNG Limited (PLL) had received offers between 15.88 and 16.99 percent of Brent for its six-cargo tender floated for December delivery.

Socar offered 16.84 percent of the Brent Crude as against 17.394 percent offered by Vitol and 19.298 percent offered by Trafigura.

Trafigura bid lowest rate at 16.98 percent of Brent Crude for the second cargo to be delivered on December 8-9, 2020.

Gunvor Singapore offered 18.25 percent; Vitol offered 18.64 percent; DXT Commodities offered 18.99 percent and Total Gas & Power bid 17.028 percent of Brent. Vitol won the bidding for the rest of four deliveries to be made during December 2020 offering 16.97 percent; 16.55 percent; 15.975 percent and 15.876 percent of Brent Crude for subsequent deliveries.

In October this year, Pakistan ramped up spot buying of liquefied natural gas (LNG) from the international market, seeking up to six cargoes for December 2020.

December and January see the largest spike in demand for gas in Pakistan, but this year the demand-supply shortfall will be greater on the back of higher consumption and diminishing indigenous supply, authorities believe.

Pakistan has long-term LNG agreements in place, including one with Qatar, but has also been active on the spot market since August.