ISLAMABAD: Pakistan LNG Limited (PLL) Thursday received lowest bids from Total Energies Gas and Power for Liquefied Natural Gas (LNG) cargoes for delivery windows for May in response to an emergency tender floated in the international market. However, out of seven, six contract price for LNG cargoes were received.

The cargoes were sought on an urgent basis after earlier committed cargoes were canceled.

The lowest contract price for a cargo requested for May 1-2 delivery received at $29.67/mmbtu from Total Energies Gas and Power. The second bid for same delivery window was received from Vitol Bahrain at $29.7920 per mmbtu.

Pakistan, which has increased its dependence on LNG in recent years due to depleting indigenous natural gas deposits, issued separate tender for six deliveries in May and June earlier this month.

Qatar Energy quoted the lowest bid for May 12-13 delivery at $25.15 per mmbtu and for the June 6-7 delivery window at $27.65 per mmbtu.

Total Energies Gas and Power again quoted the lowest bids for the May 17-18, May 27-28, and June 16-17 deliveries at $31.77 per mmbtu, $26.87 per mmbtu, and $29.04 per mmbtu.

Pakistan LNG Limited invites bids for six LNG cargoes

There was no bid for delivery for the June 1-2 window so far, industry sources said. The final decision on acceptance of rejection will be taken in the board meeting of the PLL.

The CNG station association and the general industry hoped to resume the gas which was suspended earlier this month due to shortage.

“Government has taken a bold step and bought the LNG from the international market in this difficult time for reducing the gas shortage and gas supply to power plants specifically and other consumers,” Ghiyas Paracha stated.

Copyright Business Recorder, 2022