SOCAR, ENOC offer lowest prices for Feb LNG cargoes to Pakistan
Global LNG supply has been tight amid production issues and that has pushed spot prices to a near two-year high and freight rates for LNG tankers to a more than one-year high
ISLAMABAD: SOCAR Trading (UK) Limited and ENOC Singapore have offered the lowest prices to supply two liquefied natural gas (LNG) cargoes to Pakistan LNG Limited (PLL) for delivery in February 2021, according to a tender document published on Tuesday.
SOCAR offered a cargo for delivery between Feb. 15 to 16 at a percentage of the Brent crude oil futures price, known as a slope rate, of 23.4331% while ENOC offered a slope rate of 20.8483% for a cargo for Feb. 23 to 24, according to the document on the PLL website. PLL is a government subsidiary that procures LNG from the international market.
Global LNG supply has been tight amid production issues and that has pushed spot prices to a near two-year high and freight rates for LNG tankers to a more than one-year high.
Pakistan is yet to decide on whether it will award the tenders, said an official at the country’s petroleum ministry, as the rules require a 10-day gap between the bid announcement and the award.
Earlier this month, Pakistan issued a prompt tender after three out of six cargoes it had sought in an earlier tender for January received no bids, but the country did not award the tenders given the high rates.
The South Asian country has become an emerging buyer in the international LNG market over the last few years, with an increasing gap between demand and supply of gas.
Pakistan has long-term purchase deals in place, but regularly taps the spot market as demand continues to rise.
The power sector is Pakistan’s largest natural gas consumer, followed by residential consumption and the fertiliser industry. (Reporting by Gibran Peshimam; Editing by Christian Schmollinger)