KARACHI: Pakistan LNG Limited (PLL) has shortlisted Gunvor Singapore for supply of four of five LNG cargoes, 140,000 cubic meters each, to be supplied in January 2020.
Gunvor Singapore offered the price at 9.488% of Brent crude for first cargo to be delivered on 06-07 January; 9.588% of Brent for second and third cargoes to be delivered on 011-12 and 16-17 January; and 9.788% of Brent for fifth cargo to be delivered on January 28-29, 2020. DXT Commodities SA has offered a price at 9.538% of Brent for fourth cargo to be delivered on January 23-24, 2020.
Six companies including DXT Commodities SA, Gunvor Singapore, SOCAR Trading, PetroChina International, Trafigura and Vitol Bahrain had submitted their bids in response to a tender issued by Pakistan LNG Limited (PLL) on October 25, 2019.
The government is looking at delaying the supply of LNG cargoes under long-term contracts, which have much higher prices, and engage in more spot purchases in order to take benefit of low prices and save millions of dollars every month.
Pakistan is currently importing LNG from Qatar at 13.37% of Brent crude price, which is quite higher than the bids offered in the recent tender. Qatar has offered a lower price of 11.5% of crude for additional supply of 200 mmcfd.
Import of LNG was estimated at around eight million tonnes last year. Expected annual import of LNG would rise to 15-30 million tonnes over the next four to five years, according to official estimates.