Pakistan floats tender for two spot LNG cargoes

State-owned Pakistan LNG has released a new tender inviting firms to submit bids for a total of two shipments for delivery in November.

Pakistan LNG offered two windows for the cargo deliveries, according to a tender document dated November 2.

The delivery windows include November 19-20 and November 26-27.

The importer is seeking 140,000-cbm cargoes on a delivered ex-ship (DES) basis while the tender closes on November 5.

Also, the potential tender winner will deliver the cargoes to the FSRU BW Integrity serving Pakistan GasPort’s terminal in Port Qasim, Karachi, or the Energo Elengy facility.

Local media reports suggest that this is an emergency tender as term suppliers Gunvor and Eni canceled deliveries of two November LNG cargoes.

Prior to this tender, Pakistan LNG sought eight spot LNG cargoes over the December-January period. However, it received no offers for these cargoes.

This comes at a time when spot LNG prices broke several records.

S&P Global Platts said last month that the JKM for November had reached $56.326/MMBtu, the highest level for the LNG benchmark for Asian spot LNG since Platts launched it in early 2009. The price declined in the meantime but it continues to trade around $30/MMBtu.

Pakistan has been steadily increasing its LNG imports over the years and the country plans to build several more terminals to cope with gas shortages for power generation.

Port Qasim currently hosts two LNG import facilities both utilizing floating storage and regasification units.

The country’s first terminal started operations back in 2015 utilizing Exclerate’s FSRU while the second floating LNG import facility uses FSRU BW integrity.

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