Pakistan LNG Limited (PLL), a subsidiary of Government Holdings (Pvt.) Limited floated the tender to import 140,000 cubic meters each of liquefied natural gas (LNG) to be delivered in April 2021.
This move has come after the government has faced severe criticism over delay in issuing tenders for the January and February cargoes and the cold response to the bids tenders issued by the PLL for delivery in January.
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The deadline to submit bids for the said tenders is January 29, 2021. The government issued the tender for the import of 280,000 cubic meters of LNG from the spot market. PLL issued an advertisement in this regard, which said that the country is seeking two cargoes of equal delivery in two windows.
The first LNG cargo is arriving on April 6 and the second on April 19-20 on a delivered ex-ship basis, according to the advertisement issued by the PLL.
PLL had issued tenders in the middle of November for delivery in January. However, as per reports, not even a single bid has been received by the government for the three cargoes to be delivered in the first half of the month. Also, the companies offered a much higher price for the deliveries in the second half of the month. PLL received these all-time highest bids up to 32.48 percent of Brent crude.
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The gap in demand and supply of gas, which is already wide enough to necessitate regular import of LNG, is likely to exacerbate beyond two billion cubic feet per day due to the intensity of winters and the recent increase in industrial activity. In the upcoming years, this gap is also likely to expand due to urbanization and CPEC projects.
