ISLAMABAD: Pakistan LNG has chosen QP Trading to supply it with a cargo of spot LNG for delivery March 10-11 at $25.12/mmbtu as it seeks to arrange fuel after long-term sellers were unable to deliver, a source close to the matter said.
Pakistan LNG had sought two cargoes but did not receive any offers to import a cargo for March 2-3, the source said.
QP Trading and ENOC had submitted bids to supply a cargo for March 10-11, the source said, adding that QP offered LNG at $25.12/million British thermal units (mmBtu) while ENOC quoted $26.1625/mmBTU.
QP Trading is a unit of Qatar Petroleum, which recently rebranded as Qatar Energy.
The energy ministry and Pakistan LNG did not immediately respond to Reuters requests for comment. Pakistan LNG has to finalise the tender by 10 p.m. local time (0300 GMT).
Eni and Gunvor, both long-term suppliers to Pakistan, were unable to deliver scheduled cargoes for March, an industry source told Reuters.
Eni confirmed it suffered disruptions in the LNG supply chain in Pakistan, “originated by a third-party supplier that defaulted in its supply obligations for unspecified reasons”.
It said it is evaluating all contractual remedies, including legal action, to preserve its rights.
Gunvor declined to comment.
Natural gas prices around the world soared late last year because of a combination of tightened supply, weaker renewable power generation and strong growth in demand.
Asian spot LNG prices are hovering at $25/mmBtu but sentiment remains bullish on a colder weather outlook and uncertainty over European gas supply amid geopolitical tensions.
Pakistan’s LNG demand is rising as local supply has steadily dwindled.
It has a number of long-term contracts, including two with Qatar; the most recent signed last year with deliveries that began in late 2021.
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