Bids Pour In for Pakistan LNG's January Import Tender, Boosting Energy Prospects
The state-owned enterprise, responsible for sourcing LNG globally, initiated the tender on Monday, specifying the need for the cargo to be delivered to Port Qasim, Karachi, between January 8 and 9.
Karobar
SINGAPORE: Pakistan LNG Ltd has garnered bids from OQ Trading, QatarEnergy Trading, Trafigura, and Vitol for an upcoming liquefied natural gas (LNG) cargo scheduled for delivery in January, as disclosed by Pakistan LNG in a recent announcement.
Pakistan LNG Ltd (PLL) holds a pivotal role in the country's energy landscape, mandated by the government to import and distribute natural gas, LNG, and re-gasified LNG. Functioning across the entire LNG supply chain, PLL not only procures LNG from international markets but also facilitates onward arrangements for end-user gas supply.
Given Pakistan's dependence on gas for power generation, the country has encountered challenges in securing spot LNG cargoes, particularly after global prices surged last year following geopolitical events. The aftermath of Russia's invasion of Ukraine led to heightened LNG prices, contributing to widespread power outages in Pakistan.
This recent tender comes on the heels of PLL's successful awarding of two LNG cargoes to commodities trader Vitol in response to a September tender for December deliveries. However, it's worth noting that PLL faced challenges in June, failing to secure offers for six cargoes.
Pakistan currently sustains its LNG needs through two long-term supply agreements with Qatar, one signed in 2016 and another in 2021. Additionally, an annual portfolio contract with ENI further contributes to the country's LNG requirements.
