Pakistan looks for several cargoes

Thursday, 07 January 2021
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The Pakistan Government had booked 12 LNG cargoes to meet gas demand. 

One cargo scheduled for 30th December was recently moved into January. In addition, some cargo volumes were increased.

Due to severely cold weather experienced during the middle of December, Pakistan will be moving 30% more LNG volumes in January, compared to January, 2018, at the cheapest ever price of $6.34 per mmBtu for a peak winter month.

Later is was announced that SOCAR Trading (UK) and ENOC Singapore have offered the lowest prices to supply two LNG cargoes to Pakistan LNG Limited (PLL) for delivery in February, 2021, according to a tender document on the company’s website.

SOCAR offered a cargo for delivery between 15th-16th February to at a percentage of the Brent crude oil futures price, known as a slope rate, of 23.4331% while ENOC offered a slope rate of 20.8483% for a cargo for 23rd-24th of February.

Earlier, Pakistan had issued a prompt tender after three out of six cargoes it had sought in a tender for January cargoes received no bids, given the high rates.

PLL also said that it was seeking two cargoes for April delivery.

The cargoes are to be delivered ex-ship (DES) basis Port Qasim over 5th-6th April and 19th-20th of that month.

This tender is due to close on 29th January but will remain valid until 12th February.

Long term increase

Pakistan’s Petroleum Division said that all spot cargoes purchased thus far had averaged $6.84 DES, while cargoes received under long term contracts averaged $8.06 DES, an increase of 18%.

Addressing local media comments about the prices, a PLL spokesperson said that the procurement process requires a 30-day tender, followed by another 10 days before it is awarded.

PLL starts the tender process around 90-100 days beforehand as soon as the demand is confirmed.

Meanwhile, Pakistani state-run Pakistan LNG Terminals and Pakistan LNG were merged into a single entity called Pakistan LNG.

The two companies were originally formed to manage LNG imports and terminal operations, with Pakistan LNG Terminals handling storage and regasification, and Pakistan LNG the import and marketing of the gas.

However, their functions overlapped, according to local newspapers and as the government had decided that no new public sector LNG terminals will be built, Pakistan LNG Terminals had lost some of its gravitas.

Elsewhere, the Electricity Generating Authority of Thailand (EGAT) plans to import 1.9 mill tonnes of LNG this year, followed by 1.8 mill tonnes per year in 2022 and 2023, said new EGAT governor, Boonyanit Wongrukmit.

EGAT will also seek approval early next year for its plan to issue tenders for the acquisition of an FSRU. 

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