Pakistan has again received expensive bids for the seven cargoes of Liquefied Natural Gas.
The deliveries are to be made between 7 October and 27 November, and Pakistan LNG Ltd. (PLL) may end up rejecting these bids.
Reportedly, three bidders technically qualified for the bidding — PetroChina, Total Gas & Power, and Vitol Bahrain. They collectively submitted ten bids, with the highest bid at $25 per unit for the 27 October—28 October delivery slot.
Prior to this, PLL had rejected such high bids and had gone for the second round of bids on short notice. This had allowed the state-run company to receive lower bids, which is why PLL may choose to go the same way again this time.
While speaking to a national daily, PLL’s Acting Managing Director, Masood Nabi, said that for now, PLL has not decided whether it will accept the bids that are valid for 15 days, and added that the company’s Board of Directors will make the final decision.
Stephen Stapczynski, a Singapore-based Bloomberg reported that the lowest offer prices were between $17.1-$22.6/mmbtu. For comparison, spot prices are currently around mid-$16.
Liquefied Natural Gas (LNG) prices generally soar in the winter months but this year, the elevated global prices of LNG have also translated into higher prices for Pakistan.
However, once Pakistan’s LNG import deal is formally operational in January 2022, its average prices may reduce nearly 11 percent of Brent.