Pakistan LNG Limited (PLL) has extended validity for liquefied natural gas (LNG) supply bids, being sought from international traders, from September 2, 2022 to October 3, 2022 keeping in view high prices of gas in global market and poor response from suppliers, say sources.
As Pakistan is facing acute energy shortages, PLL sought a six-year LNG supply contract from international trading companies by issuing a two-part tender on August 6.
A five-year LNG supply agreement with international trading firm Gunvor has expired. Now, PLL has released the tender for a six-year term agreement.
Bids have been invited from the international LNG suppliers for cargo deliveries at Port Qasim, Karachi.
As per the tender, if Pakistan gets the bid price, it will purchase 72 LNG cargoes in six years, which means one cargo will have LNG volume of 140,000 cubic metres every month.
Ongoing Russia-Ukraine war, emergency gas purchases by European countries and continuing disruption to global energy supplies because of the Covid-19 pandemic have increased LNG prices significantly, making it difficult for a country like Pakistan to purchase gas cargoes at affordable prices.
Under first part of the tender, bids have been invited for only one year, from December 2022 to December 2023 under which 12 LNG cargoes will be delivered to Pakistan – one cargo per month.
Under part two, Pakistan is seeking 60 LNG cargoes over five years starting from January 2024 and ending in December 2028 — one cargo every month.