Pakistan LNG Limited (PLL) has received bids for only one of the two liquefied natural gas (LNG) cargoes for delivery in March, reported Reuters.
According to the report, the company was expecting delivery of two cargoes through prompt tenders in March after long-term sellers could not deliver. However, PLL has not received any bids for the delivery on 2-3 March, but only two bids have been made by Qatar Petroleum (QP) Trading and Emirates National Oil Company (ENOC) for the delivery of 10-11 March.
QP Trading has offered LNG at $25.12 per million British thermal units (mmBtu), whereas ENOC has offered $26.1625 per mmBtu.
ENI and Gunvor, two oil companies which have been long-term suppliers in Pakistan were unable to supply the scheduled cargoes for March, a source from the industry told Reuters.
Eni has confirmed that it has experienced disruptions in the LNG supply chain in the country due to the inability of a third-party supplier to meet its obligation, whereas Gunvor declined to comment on the issue.
It is pertinent to note that natural gas prices surged late last year due to tightened supply, weaker renewable power generation, and high growth in demand.
Currently, Asian spot LNG prices lie at $25 per mmBtu, but sentiments are bullish given the colder weather outlook and possible disruption in European gas supply amid geopolitical tensions.
The United States of America and the European Allies are planning to put sanctions on Russia after the Russian President, Vladimir Putin, formally recognized two regions of Ukraine as independent.
LNG demand in Pakistan has been rising, whereas the local supply has declined. Currently, Pakistan has several long-term contracts, which include two with Qatar, the most recently signed last year.
