Pakistan gets five bids for two spot LNG cargoes for June

ISLAMABAD: The Pakistan government on Wednesday secured five bids from three LNG trading companies for two LNG spot cargoes for June starting from the lowest price of $22.498 up to the highest one at $25.77 per MMBTU.

The 100 per cent state-owned Pakistan LNG Limited (PLL) had issued a tender on April 30, 2022 asking for submission of bids till May 11, from international trading companies for two spot LNG cargoes each carrying 140,000 cubic meters LNG to be delivered on June 1-2 and on June 28-29. The bids were opened here on Wednesday (May 11, 2022). Three LNG trading companies emerged as technically qualified bidders which include PetroChina International Singapore, Total Energies and Vitol Bahrain.

For the spot cargo to be delivered on June 1-2, PetroChina International Singapore offered the lowest bid of $23.968 per MMBTU, while TotalEnergies came up with the highest bid at $25.77. Similarly, for delivering the cargo on June 28-29, PetroChina International Singapore deposited the lowest ever bid of $22.498 per MMBTU. TotalEnergies again came up with the highest bid of $25.89 per MMBTU for June 28-29 and Vitol Bahrain $22.94 per MMBTU.

Thus PetroChina International Singapore won both the contracts for the twoLNG cargoes, one at $23.968 per MMBTU and another one at $22.498 per MMBTU. Pakistan LNG Limited (PLL) is bound to inform PetroChina International Singapore about contract confirmation by tomorrow (May 13). According to a top official privy to the development, the PLL Board is inclined to procure the two LNG cargoes from PetroChina International Singapore.

With this, Pakistan has secured the lowest bids for spot LNG cargoes for June as compared with the minimum price of cargoes at $24.1500-31.778 per MMBTU obtained for May. The official said that the government has decided to ensure maximum electricity generation through RLNG based power plants due to which the government has diverted 900mmcfd RLNG to the power sector. Earlier the power sector was provided only 550mmcfd.

The government is currently facing loadshedding across the country and is trying from pillar to post to provide fuel to power plants and expedite the maintenance of plants which the PTI government failed to do in the last winter. The PTI government also did not deliberately arrange the fuel and LNG, causing 7,434 MW plants to shut down when the new government came to power.