Pakistan Initiates Search for LNG Cargo to Meet January Demands
Pakistan LNG Limited (PLL), a key government subsidiary responsible for procuring liquefied natural gas (LNG) from the global market, has released a tender, actively seeking an LNG cargo for January delivery. The tender, announced on Monday, specifies the need for one cargo on a delivered-ex-ship (DES) basis, destined for Port Qasim in Karachi during the delivery windows of January 8-9. The deadline for tender submissions is set for November 24.
Karobar
This move by PLL aligns with the mandate from the Pakistan government, tasking PLL with the import and sale of natural gas, LNG, and re-gasified LNG. Acting as a crucial link in the LNG supply chain, PLL procures LNG from international markets and organizes onward arrangements for gas supply to end-users.
Given Pakistan's reliance on gas for power generation, the country has faced challenges in securing spot cargoes of LNG, particularly after global prices surged following geopolitical events, such as Russia's invasion of Ukraine, resulting in widespread power outages.
Notably, PLL had previously issued a tender in September, seeking two LNG cargoes for December, ultimately awarding the tender to commodities trader Vitol. However, in June, PLL encountered difficulties in securing offers for six cargoes for delivery to Port Qasim in October and December on a DES basis.
Pakistan currently holds two long-term supply agreements with Qatar, one signed in 2016 for 3.75 million metric tons of LNG annually and another inked in 2021 for an additional 3 million metric tons per year. Additionally, an annual portfolio contract with ENI for 0.75 million metric tons contributes to Pakistan's LNG supply.
Despite these arrangements, data from data analytics group Kpler reveals a decline in Pakistan's LNG imports to 6.93 million metric tons in 2022, down from 8.23 million metric tons in the previous year.
