Pakistan LNG Ltd, a subsidiary of state-owned Government Holdings, is seeking liquefied natural gas (LNG) cargoes after being absent from the spot market for four months, as long-delayed new power plants start to come online. Delays at three new power plants had caused the company to divert shipments earlier this year and pause spot imports of the super-chilled fuel.
The new power plants, Haveli, Bhikki and Balloki, are "basically online", a senior Pakistan energy official told Reuters on Wednesday. Haveli, a combined-cycle natural gas plant with a capacity of 1,230 megawatts (MW), has started operating at full capacity, according to local media. However, it was not clear if the other two plants are fully operational.
Pakistan LNG is seeking the LNG to the meet demand for the three new power plants and other power stations the official said, declining to be named as he was not authorised to speak with media. Pakistan has sought to convert expensive oil-fired power plants, which account for a large chunk of its power generation, into gas to save money.
The country's return to the LNG spot market could boost prices at a time when plentiful supply has been outweighing summer demand and higher oil prices. Pakistan LNG is now seeking six liquefied natural gas (LNG) cargoes of about 140,000 cubic metres each for delivery over July to August, according to a tender document seen by Reuters on Wednesday. The company is seeking the cargoes on a delivered ex-ship (DES) basis at Port Qasim in Karachi, Pakistan.
Delivery dates are July 8 to 9, July 19 to 20, July 29 to 30, August 8 to 9, August 13 to 14 and August 23 to 24 and offers are due by June 19, according to the document. The company last sought three LNG cargoes in January for delivery in April.
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