Italy’s energy firm Eni and commodity trader Vitol have submitted the lowest bids in a tender to supply Pakistan with three LNG cargoes in March.
To remind, state-owned Pakistan LNG launched the tender in December with three delivery windows spanning from March 9-10, March 16-17, and March 22-23.
Moreover, seven companies took part in the tender including Eni, Vitol Bahrain, PetroChina, Qatar Petroleum’s new trading unit, Posco, BB Energy. BP Singapore also submitted an offer but this bid did not technically qualify, Pakistan LNG’s evaluation report dated January 15 shows.
All of the offers are oil-linked, expressed as a percentage of the Brent crude oil price.
The report shows that Eni submitted the most competitive bid at 22.2421 percent of Brent for the first window.
Furthermore, Vitol offered a slope rate of 17.8131% for the second window and 17.1917% for the third, according to the report.
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 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.