The Pakistan LNG Ltd (PLL) had issued a tender (PLL/IMP/LNGT30) for three spot cargoes for March on 16 December 2020 and had opened bids on 15 January 2021, with the opening of bids and deliveries ranging from 53 to 66 days.
The Petroleum Division announced that the PLL had received multiple bids for all the cargoes but had decided not to award them in consideration of the rapidly changing supply and demand position.
The PLL had issued an urgent tender (PLL/IMP/LNGT34) for similar delivery windows on 21 January 2021 with an average of 44 to 57 days from bid opening to delivery.
The shorter lead time tender has been awarded while saving an estimated USD$ 30 million for the three cargoes, as compared to the earlier ones.
As stated multiple times before, this again demonstrates that prices are determined by supply and demand rather than through early orders.