Vitol to supply one spot LNG cargo to Pakistan

A unit of commodity trader Vitol has placed the only bid in a tender to supply Pakistan with two spot LNG cargoes in July.

State-owned Pakistan LNG issued a tender on June 4 seeking two 140,000-cbm cargoes for delivery on July 8-9 and July 12-13.

However, Vitol Bahrain placed an offer for only the second delivery window. The trader offered a price of $12.7777/MMBtu, Pakistan LNG’s evaluation report dated June 8 shows.

For comparison, Vitol submitted an offer with a price of $11.6612/MMBtu for the same window in the previous tender for nine spot LNG cargoes over the July-August period.

In that tender, Vitol submitted the most competitive bids for the July 12-13 delivery but also for August 12-13, and August 17-18. Trafigura offered $11.7747/MMBtu for the July 8-9 delivery.

Both Trafigura and Vitol were the only bidders for the July 8-9 and July 12-13 slots.

Pakistan LNG did not provide any additional information on why it launched another tender in a short period for the same two slots.

The firm has probably awarded seven out of the nine cargoes in the previous tender and launched another tender hoping to get better prices for the two shipments.

If approved, Vitol would deliver the sole July cargo to the FSRU BW integrity serving Pakistan GasPort’s terminal in Port Qasim, Karachi.

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