PSO Buys Priciest LNG Cargo as Prices Jump

Pakistan purchased its most expensive Liquefied Natural Gas (LNG) cargo as prices surge globally amid a surge in demand.

Pakistan State Oil (PSO) bought a spot shipment for delivery on 26-27 September at a rate of $17.85 per Metric Million British thermal unit (MMBtu), according to a PSO bid award notification.

The tender closed on 20 August, and Dutch energy company, Vitol, was awarded the bid on 30 August.

According to Bloomberg, Vitol will supply the shipment at a 24.5456% link to Brent crude oil, which is equivalent to ~$17.85/mmbtu. PSO decided not to purchase a Sept. 16-17 delivery cargo in the same tender due to a higher-than-expected offer price from Qatar Petroleum. Qatar offered the shipment at a 34.6688% link to Brent crude oil, which is equivalent to $25.22/mmbtu

PSO also re-issued a tender seeking five LNG cargoes delivery in October and November this year. The re-issue was because the bids it received were too expensive, ranging from $17.1/MMBtu to $22.6/MMBtu.

Similarly, PSO scrapped a previously issued tender for the delivery of LNG cargo on 24-25 August. Vitol offered the lowest bid at $20/MMBtu.

Asian LNG spot prices have swelled to their highest in eight years amid a surge in demand, threatening to touch $18/MMBtu earlier this August, according to a report by S&P Global Platts.

“Asia’s spot LNG trade has moved into the unchartered territory from this summer, trading for an extended time above oil-parity prices,” said Jeffrey Moore, Asia LNG manager for S&P Global Platts Analytics.

 



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