Pakistan LNG Limited (PLL), a fully-owned subsidiary of Government Holdings Private Limited (GHPL), has invited bids for ten LNG cargoes from overseas providers during the period of July-August-September in response to the country’s worsening energy situation.
By July 7, suppliers are expected to submit their proposals.
PLL said that “reputable enterprises are requested to submit bids for the delivery of cargo on a ship-by-ship basis (DES) at Port Qasim, Karachi.”
The corporation is looking for the cargoes during the following windows, according to documents:
first cargo between July 25 and 26,
second shipment for July 30-31,
third shipment for August 4-5,
fourth shipment for August 10–11,
fifth shipment for August 15–16,
sixth shipment for August 20-21,
Sixth shipment for August 30 and 31,
eighth shipment for September 9–10,
tenth shipment for September 14–15, and
10th cargo for September 19–20
PLL, which has been contracted by the government of Pakistan to handle the business of importing, buying, storing, supplying, distributing, transporting, transmitting, processing, measuring, metering, and selling natural gas, LNG, and re-gasified LNG, added that each cargo must have a volumetric quantity of 140,000m3.
PLL manages the entire LNG supply chain from procurement to end customers in this role by acquiring LNG from international markets and establishing further agreements for the sale of gas to final users.
It is important to note that prices for energy commodities, particularly LNG, have risen amid supply-chain interruptions caused by the conflict in Russia and Ukraine.
On the other side, Pakistan is experiencing a fuel scarcity, notably in its power industry, as summertime electricity demand soars and results in nationwide power disruptions.
In order to identify the root reasons of the nation’s energy crisis, the administration has also decided to establish an inquiry commission.
For an LNG import tender seeking a cargo in the July 30-31 window, Pakistan LNG Ltd (PLL) last month only received one bid, at $39.80/mmbtu, from Qatar Energy. For the remaining three deliveries requested in July, it received no offers.
During the periods of July 3-4, 8-9, 25-26, and 30-31, Pakistan has requested four cargoes from foreign suppliers.
To preserve the nation’s foreign exchange reserves, Prime Minister Shehbaz Sharif announced last week that the LNG tender for July had been cancelled.
He claimed that accepting the tender would have depleted the meagre stockpiles while speaking at a meeting on the energy issue.
He stated, “We are attempting to support central bank reserves.” “We limited the import of machinery and raw materials to save Pakistan $2 to $3 billion.”
