Pakistan seeks spot LNG cargoes for first time in nearly a year

Updated 13 Jun, 2023

SINGAPORE: Pakistan has issued two tenders seeking spot liquefied natural gas (LNG) cargoes for the first time in nearly a year, said an official with a company in charge of buying LNG for the country.

Pakistan LNG (PLL), a government subsidiary that procures LNG from the international market, in the first tender is seeking six cargoes on a delivered-ex-ship (DES) basis to Port Qasim in Karachi in October and December, said the official on Tuesday.

The delivery windows are Oct. 5-6, 20-21 and 31, and Dec. 7-8, 13-14 and 24-25.

The tender will close on June 20.

A second tender seeking three cargoes, also on DES basis to Port Qasim, has delivery windows of January 3-4, 28-29 and February 23-24.

The second tender closes on July 14. Pakistan LNG last issued a tender seeking 10 spot cargoes in July 2022, but it received no offers.

Dependent on gas for power generation, the country has struggled to procure spot cargoes of LNG after global prices spiked last year following Russia’s invasion of Ukraine, leaving it to face widespread power outages.

Asian spot LNG prices this year have eased from record highs hit in August, however, prompting Pakistan to issue the new tenders.

Pakistan has two long-term supply deals with Qatar, one signed in 2016 for 3.75 million metric tons of LNG a year, and another signed in 2021 for 3 million metric tons a year.

It also has an annual portfolio contract with ENI for 0.75 million metric tons a year.

ENI unable to deliver Feb LNG cargo to Pakistan, declares force majeure

In 2022, Pakistan’s imports of LNG slowed to 6.93 million metric tons for the year, down from 8.23 million metric tons in 2021, according to data from data analytics group Kpler.

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