Gunvor, one of the world’s largest commodities trading houses, has submitted the lowest bid in a tender to supply Pakistan with two LNG cargoes in November.
The state-owned Pakistan LNG launched the tender in September with the delivery windows from November 8-9 and November 18-19.
Five companies took part in the tender including Gunvor, Posco, PetroChina, Trafigura, and DTX Commodities.
But only Gunvor and Trafigura submitted bids for both of the cargoes, Pakistan LNG’s report dated October 9 shows.
Furthermore, all of the offers are oil-linked, expressed as a percentage of the Brent crude oil price.
Swiss-based trader Gunvor submitted the most competitive bids at 14.2277 percent of Brent for the first shipment and 13.8377 percent of Brent for the second.
The tender winner will deliver the cargo on a DES basis to the Port Qasim, where two Pakistan’s LNG facilities are located.
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.
The country imported 8.10 million tonnes of the fuel last year, a rise of 18.1 percent on year.
Qatar is the largest supplier of LNG to Pakistan but the country also receives chilled fuel from other Middle East producers and suppliers from other regions.