Business

PLL skips awarding tender to Trafigura

Trafigura had offered bids of $23.47 per million British thermal units (mmBtu) for an LNG import tender

Reuters August 02, 2023

Under the agreement, PGPC would have unconditional right to use excess capacity available at LNG terminal for third party and its affiliates. photo: file

SINGAPORE:

Pakistan LNG Limited (PLL) did not award a tender to commodities trader Trafigura, which had offered bids to deliver two spot cargoes of liquefied natural gas (LNG) to the South Asian nation next year, an industry source said on Tuesday.

Trafigura had offered bids of $23.47 per million British thermal units (mmBtu) for an LNG import tender to be delivered on January 3-4 and $22.47 per mmBtu for February 23-24 delivery, a source said last month.

A notice on PLL’s website showed it received two bids from Trafigura as well. But PLL did not pick up the bids as the price levels were still too high, especially for the winter season, the industry source said, requesting anonymity.

Asian spot LNG prices were last at $11 per mmBtu on Friday, and have been trading below $20 per mmBtu for most of this year, but could rise during winter when seasonal demand kicks in.

Pakistan last imported spot LNG in June 2022, when it awarded a tender to PetroChina for two cargoes.

In June, Pakistan issued two tenders seeking spot LNG cargoes for the first time in nearly a year.

Published in The Express Tribune, August 2^nd, 2023.

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