After a gap of more than a year, Pakistan has received its first offer for the procurement of two shipments of liquefied natural gas (LNG).
Singapore-based commodity trading company Trafigura Group has offered two LNG shipments to Pakistan for delivery between January and February, reported Bloomberg.
The cargoes offered by Trafigura are priced at a 30 percent premium to current market rates.
Trafigura’s offer comes after the government subsidiary Pakistan LNG floated two tenders in June 2023 seeking spot cargoes from the international market.
The Singapore-based enterprise responded to the second tender seeking three cargoes, also on a delivered-ex-ship basis to Port Qasim, which has delivery windows of January 3-4, 28-29, and February 23-24. The second tender closes today (July 14).
Pakistan will not award the tender until July 31, and it is unclear whether it intends to purchase the fuel. Lately, credit risk has largely prevented LNG suppliers from selling LNG to the country.
Pertinently, Pakistan last issued a tender seeking 10 spot cargoes in July 2022. However, no bids were received at that time.
Islamabad struggled to procure spot LNG cargoes last year after global prices rose to record levels in the aftermath of Russia’s invasion of Ukraine. Regardless, Asian spot LNG prices have eased this year from record highs of August 2022.
The low LNG prices have likely resulted in Pakistan floating the two tenders, and this might be the reason why Trafigura opted to submit an offer.
