Pakistan’s government has procured four LNG cargoes at the highest-ever rates of $15.19-$15.49 per MMBtu to be delivered next month.
State-owned Pakistan LNG Limited (PLL) originally cancelled a tender for eight September and October cargoes, arguing that the rates were high at $13.78 per MMBtu, local media said.
PLL opted for a closed tender for September at the highest rates since it started buying LNG in 2015. Three LNG cargoes will be purchased from Gunvor and one from PetroChina.
Pakistan is under pressure and was compelled to buy the cargoes at the high prices to avoid power load problems in September, local media reported.
Gunvor will provide PLL with the first cargo on 6th to 7th September at a rate of $15.397 per MMBtu, the second cargo on 12th - 13th September for $15.497 and the third on 17th - 18th September for $15.397 per MMBtu. PetroChina will provide an LNG cargo on 27th-28th September for $15.199 per MMBtu.
PLL intends to offer a tender for October and November under the Public Procurement Regulatory Authority (PPRA) rules, but feared that it will get bids close to $20 per MMBtu.
The government said that at present there is an LNG price crunch in the international market and it is difficult to predict the future price trend.
Earlier, PLL had received bids in the range of $10.2937 per MMBtu to $11.7747 per MMBtu for July cargoes, and $10.51 to $10.8312 per MMBtu for cargoes to be delivered this month, local media reported.
