Gulf war: PLL approves costly LNG purchase

ISLAMABAD:

After securing multiple bids for short-term supply, the Pakistan LNG Limited (PLL) board on Saturday approved the purchase of one liquefied natural gas (LNG) cargo from the spot market, scheduled to arrive in Pakistan on April 30.

According to official details, PLL floated urgent tenders for the import of three LNG cargoes covering the delivery window from April 27 to May 14. In response, it received four bids, three of which were declared the lowest for different delivery windows.

For the first delivery window of April 27–30, TotalEnergies submitted the lowest bid, which the PLL board approved at a price of $18.88 per million British thermal units (mmBtu).

The approved cargo, carrying approximately 140,000 cubic metres of LNG, will be delivered on a delivered ex-ship (DES) basis and is expected to reach Pakistan on April 30. For the subsequent delivery windows, Vitol Bahrain offered the lowest bid of $18.54/mmBtu for the May 1–7 period, while OQ Trading submitted the lowest bid of $17.997/mmBtu for the May 8–14 window. However, despite being the lowest offers, the PLL board decided not to approve these bids.

PLL had issued the tender amid heightened uncertainty in global LNG supply, particularly following Qatar's reluctance to send LNG cargoes stranded in the Gulf due to the closure of the Strait of Hormuz.

Three LNG cargoes from Qatar, originally meant for Pakistan, had earlier returned from the vital waterway due to security concerns, complicating supply arrangements.

Last month, the Oil and Gas Regulatory Authority (Ogra) notified a significant increase of 19–22 per cent in the price of regasified liquefied natural gas (RLNG), raising it to between $12.50 and $14/mmBtu for distribution by the two Sui gas companies during March.

PLL, one of the key public sector entities responsible for LNG imports, did not import any cargo last month.