Energy Crisis: Pakistan Fails to Acquire LNG Contract

Earlier in August, PLL requested bids for 72 LNG shipments from international suppliers over a six-year period. Pakistan LNG Limited (PLL) failed to receive a single offer from global suppliers. This happened to the purchase of Liquefied Natural Gas(LNG) in a contract. In August, PLL requested 72 LNG cargoes from international suppliers over a six-year term.

By September 14, PLL asked all reputed companies to submit their bids. To ship cargo on a Delivered Ex-Ship basis (DES) at Port Qasim, Karachi, stated PLL. According to the notice, the bid document will be available from August 10, 2022, till August 13, 2022. According to the PLL bid document, no supplier participated in Pakistan’s tender, which expired on October 3, 2022.

The document states that the company is looking for one cargo per month for six years. PLL, which the government of Pakistan mandated, is responsible for carrying out various operations. These include the business of importing, buying, supplying, storing, distributing, transporting, transmitting, selling, measuring, and metering natural gas.

In July, PLL invited bids for 10 LNG cargoes from international suppliers during the July-August-September window. Each shipment was to have a volumetric quantity of 140,000m3.

However, unluckily LNG purchaser failed to receive a single offer in a $1 billion LNG purchaser tender. The situation shows that both the reluctance of suppliers and the extent of global fuel shortage are facing an economic crisis, said the report presented by Bloomberg.

Prices for energy commodities, particularly LNG, have risen due to global supply-chain disruptions caused by the Russia-Ukraine war. On the other hand, Pakistan is dealing with a fuel shortage crisis. The recent development to intensify the energy situation will mainly happen during the winter as heating demand rises.

Read more:

• Pakistan is getting its first LNG terminal, construction starting in January 2021
• What happens if Russia’s supplies to Europe are cut?