Pakistan Fails to Attract Even Single Bid For Supply of Six Spot LNG Cargoes

 Pakistan Fails to Attract Even Single Bid For Supply of Six Spot LNG Cargoes

Despite easing of Liquefied Natural Gas (LNG) prices in international market, Pakistan has once again failed to attract even a single bid for the supply of six spot Liquefied Natural Gas (LNG) cargoes.

The state owned Pakistan LNG Limited (PLL) had, last week, invited bids from international suppliers for the delivery of six cargoes with three each for October and December 2023; however, no international bidder responded to the call.

PLL had earlier floated two separate tenders for six cargoes in October and December delivery windows, while another tender was for the supply of three cargoes in January: February delivery windows.

The tenders were floated for the procurement of spot Liquefied Natural Gas (LNG) cargoes, following the prices of super cooled gas prices dropped below $10/mmBtu in international market.

The first tender of PLL was for the supply of six LNG cargoes on a delivered: ex: ship (DES) basis to Port Qasim in Karachi in October and December.In October, bids were invited for the delivery windows of October 5: 6, 20: 21 and 31, respectively.

For December, bids were invited for delivery windows of December 7: 8, 13: 14 and 24: 25. The final date of submission of bids for this tender was June 20, 2023. However, till the final date no bid was received as suppliers have not shown any interest in the process.

Also, Pakistan had to scrap several tenders for the procurement of LNG from the international market during the past two years owing to its high price or no response from the international bidders.

For the last time in July 2022, PLL had floated tender for the purchase of 10 LNG cargoes from the spot market, but were scrapped due to no response from the bidders. The spot price of liquefied natural gas (LNG) has dropped below $10/mmBtu in the spot market from the highest level of $70/mmBtu last year in August and around $40/mmBtu in December 2022. The closing date for the second tender for January and February supply is July 14, 2023.

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