Pakistan LNG Awards Tender to OQ Trading for January Spot Cargo Delivery, Easing Supply Concerns
Pakistan LNG Limited has selected OQ Trading for a spot LNG cargo delivery in January, following a competitive bidding process. The state-owned company, mandated by the Pakistani government for gas procurement, aims to secure a stable LNG supply amid global price fluctuations.
Karobar
In a recent development, Pakistan LNG Limited (PLL) has reportedly granted a tender to OQ Trading for the delivery of a spot liquefied natural gas (LNG) cargo scheduled between January 8-9. This decision comes after a competitive bidding process that included major players such as QatarEnergy Trading, Trafigura, and Vitol. OQ Trading emerged as the successful bidder with the most competitive offer, according to a source familiar with the matter, as revealed on Monday.
The state-owned PLL, responsible for importing and selling natural gas, LNG, and re-gasified LNG on behalf of the Pakistan government, initiated the tender last week. The cargo is slated for delivery to Port Qasim, Karachi, during the specified timeframe.
PLL, acting as a crucial player in Pakistan's energy landscape, manages the entire supply chain of LNG, procuring it from international markets and arranging onward deliveries to end users. This recent tender award is part of Pakistan's ongoing efforts to secure a stable and cost-effective LNG supply.
Given Pakistan's dependence on gas for power generation, the country has faced challenges in securing spot LNG cargoes, especially after global prices surged last year following geopolitical events such as Russia's invasion of Ukraine, leading to widespread power outages.
This move follows PLL's September tender for two LNG cargoes, successfully awarded to commodities trader Vitol. However, in June, PLL encountered difficulties in securing offers for six cargoes for October and December deliveries to Port Qasim.
Notably, Pakistan maintains long-term supply agreements with Qatar, including a 2016 deal for 3.75 million metric tons of LNG annually and another signed in 2021 for 3 million metric tons per year. Additionally, an annual portfolio contract with ENI for 0.75 million metric tons further contributes to the country's LNG supply stability.
This tender award to OQ Trading is expected to address Pakistan's LNG supply concerns and contribute to ensuring a steady and reliable energy source for the nation.
