Pakistan launches tender for two spot LNG cargoes

State-owned Pakistan LNG has released a tender inviting firms to submit bids for two spot shipments for delivery in December.

Pakistan LNG offered two windows for the cargo deliveries and the tender closes on October 4, according to a document released on September 27.

The delivery windows include December 7-8 and December 13-14.

Pakistan LNG is seeking 140,000 cbm cargoes on a delivered ex-ship (DES) basis.

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

Pakistan LNG has not issued a tender for cargoes since June this year, when it launched two tenders for spot cargoes.

The firm received no offers for its tender seeking bids for a total of six spot LNG shipments for delivery in October and December, while Trafigura offered two shipments for the second tender seeking three cargoes over January-February 2024.

Trafigura offered a price of $23.4711/MMBtu for the January 3-4 delivery and $22.4722/MMBtu for the February 23-24 delivery.

This Trafigura offer was the first bid for spot LNG cargoes Pakistan received for its tenders in about a year.

However, several media reports suggested that Pakistan LNG did not take this offer due to high prices.

In October last year, Pakistan LNG said it had received no offers for its tender seeking bids for a total of 72 LNG shipments.

Prior to that, it received no bids in July for a tender seeking ten spot cargoes.

Pakistan gets most of its supplies under long-term contracts from Qatar and on the spot market, however, last year prices surged and Europe took most of the available spot supplies.

In July this year, Pakistan also signed a one-year deal to buy one LNG cargo per month from Azerbaijan’s Socar.

GIIGNL data shows that Pakistan’s LNG imports dropped by 16 percent to 6.91 million tons last year due to high prices.

The country imported almost all of these volumes under long-term contracts from Qatar, or some 6.10 million tons, the data shows.

Spot prices dropped considerably this year, prompting Pakistan and other Asian countries such as Bangladesh to return to buying spot LNG.

The JKM for November settled at $14.595 per MMBtu on Wednesday.

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