State-owned Pakistan LNG has canceled a tender to buy liquefied natural gas over a 10-year period and may turn to the spot market instead, according to a report by Reuters.
The report stated that the company issued the tender in early June to import 240 LNG cargoes of 140,000 cubic meters each for delivery over 10 years via the second LNG terminal.
But it has decided to cancel the tender due to inadequate demand for the super-chilled fuel, one of the sources said.
(The company) has decided not to proceed with technical evaluation and opening of commercial offers as there is no demand against this tender. So for now, (the company) has decided to stop the process of long-term commitment until it receives long-term demand for LNG.
Pakistan is expected to be a significant growth driver in global LNG demand with the cabinet recently approving five consortiums to go ahead with their LNG terminal plans, said the report.
Pakistan LNG’s canceled tender was being keenly watched in the industry. The company was expected to publish the lowest prices offered by bidders, providing valuable insight into the opaque LNG market, which is characterized by closed bilateral trades, private long-term supply agreements, and an over-the-counter spot market.
Italy’s Eni, China’s PetroChina, Azeri state oil company SOCAR and commodities trader Trafigura had placed offers for the tender, sources told Reuters.
be ready for the gas shortages in winter…
There year we weill face worst gas shortage in history. No demand, they must be joking right. Cancelling a lowest price contract which was done without any corruption. I think some PTI minister wants to make some money with a new heavy priced contract. My dear fellow Pakistani’s be ready for another PTI mega corruption scandal.
These are the people who are the builder of BRT Peshawar. What else you could expect from them.
This* year we will*
Fixed that for u
Long term demand dropping is an indication of slowing industrial growth and low consumption levels and poor purchasing power. With poverty setting in as gdp falls in real terms at 2.4 percent and an equal population growth the demand for LNG is not set to rise in the near future. Good step.
With a former PM of Pakistan put in Jail by NAB for making an effort to solve Pakistan’s energy crisis by importing LNG from Qatar, no one dares to make long term contracts and deals in Pakistan.
نیب نے غالب نکما کر دیا
ورنہ ہم بھی افسر تھے کام کے
Sponsors of 2 LNG Terminals so far set up at PQA are in jail, it ll take real guts for someone to go for the 3rd Terminal.