Pakistan to get the most Expansive LNG in Feb 2021

Web Desk — According to a report published in Express Tribune, Pakistan LNG Limited (PLL) has received all-time highest bid at 32.48% of Brent to secure cargoes for the month of February.

The report says that Pakistan has to purchase the costliest liquefied natural gas (LNG) in February 2021 at 32.48% of Brent with a 31-day gap between tender opening and advertisement.

PLL invited bids from international suppliers for the supply of two LNG cargoes on delivered ex-ship (DES) basis at Port Qasim, Karachi. The advertisement was given on November 28, 2020 for two cargoes for February 2021.

As a result, extremely high bids were received for two LNG cargoes for slots of February 15-16, 2021, February 23-24 from four LNG suppliers.

Earlier, for the month of January, Qatar Petroleum had emerged for the first time and offered the lowest bids of up to over 17% of Brent, forcing Pakistan to purchase the cargoes at a higher cost. Qatar Petroleum has offered the LNG cargo at 17.3203% of Brent for January 20-21, at 17.3207% of Brent for January 26-27 and at 15.3209% of Brent for January 29-February 1. Qatar Petroleum outpaced the LNG trading companies by a big margin.

Bow, Socar has offered bids at 23.4331% of Brent for the slot of February 15-16, 2021 and 22.1142% of Brent for the slot of February 23-24.

Trafigura offered bids for two slots of February 15-16 at 32.4888% of Brent and for February 23-24 at 25.9777% of Brent.

Trafigura, which was willing to covert Pakistan Muslim League-Nawaz’s (PML-N) LNG contracts to a fixed rate between $3.7 to $4.7 has now bid 32% lowest bid, which is about twice the long-term price obtained by PML-N.