Pakistan LNG Limited (PLL) has received all-time highest bid at 32.48% of Brent to secure cargoes for the month of February.
Pakistan has to purchase the costliest liquefied natural gas (LNG) in February 2021 at 32.48% of Brent with a 31-day gap between tender opening and advertisement.
PLL invited bids from international suppliers for the supply of two LNG cargoes on delivered ex-ship (DES) basis at Port Qasim, Karachi. The advertisement was given on November 28, 2020 for two cargoes for February 2021.
Extremely high bids were received for two LNG cargoes for slots of February 15-16, 2021, February 23-24 from four LNG suppliers.
Earlier, for the month of January, Qatar Petroleum had emerged for the first time and offered the lowest bids of up to over 17% of Brent, forcing Pakistan to purchase the cargoes at a higher cost. Qatar Petroleum has offered the LNG cargo at 17.3203% of Brent for January 20-21, at 17.3207% of Brent for January 26-27 and at 15.3209% of Brent for January 29-February 1. Qatar Petroleum outpaced the LNG trading companies by a big margin.
Bow, Socar has offered bids at 23.4331% of Brent for the slot of February 15-16, 2021 and 22.1142% of Brent for the slot of February 23-24.
Trafigura offered bids for two slots of February 15-16 at 32.4888% of Brent and for February 23-24 at 25.9777% of Brent.
Trafigura, which was willing to covert Pakistan Muslim League-Nawaz’s (PML-N) LNG contracts to a fixed rate between $3.7 to $4.7 has now bid 32% lowest bid, which is about twice the long-term price obtained by PML-N.
Gunvor quoted 25.5666% of Brent for slot of February 15-16 and 23.5666% of Brent for February 23-24. Emirate National Oil Company (Enoc) gave the bid at 20.8483% of Brent for February 23-24 slot. Vitol also submitted its bid for the last time slot at 24.4321% of Brent.
Meanwhile, Socar offered bids at 20.4832% of Brent only for the last time slot of January 29-February 1, 2021, Trafigura offered bids for two slots of January 20-21 at 27.2727% of Brent and for January 29-February 1 at 33.9499% of Brent. Enoc gave the bid at 24.8888% of Brent for January 29-February 1.
Published in The Express Tribune, December 29th, 2020.
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Winters always has an upsurge of fuel prices of fuels that are popular for heating. Every country is taking in heavy loads for their populations so the prices witness increases in this season. The smart move is to make a domestic storage policy and build strategic domestic storage of gas. Store gas when the price is low and supply it to local demand in winter when external supply prices are high. Also can sell the stored gas acquired in summer at low price for a high price in winter. Its as simple as ABC. Its a business model right there. Who in Pakistan is wise enough to cash in on it