ISLAMABAD: Pakistan LNG Limited (PLL) has extended the deadline for submission of bids for two spot liquefied natural gas (LNG) cargoes scheduled for delivery in December and January to November 10, following complaints from international LNG traders about technical difficulties with the newly introduced e-Pak Acquisition and Disposal System (EPADS) version 2.0.
Thank you for reading this post, don't forget to subscribe!The bidding deadline was originally set for November 6. However, several prospective suppliers reportedly encountered difficulties submitting their offers through the electronic procurement platform introduced by the Public Procurement Regulatory Authority (PPRA), prompting PLL to extend the deadline to ensure wider participation.
The state-owned LNG buyer has fixed November 10 as the revised deadline for bid submission, with bids scheduled to be opened on the same day.
The extension is intended to give potential suppliers additional time to complete the bidding process and encourage greater competition, enabling Pakistan to secure more competitive prices for the LNG cargoes.
On November 4, PLL issued tenders for two spot LNG cargoes following approval from the prime minister, as Pakistan prepares for a potentially worsening gas shortage during the peak winter months.
Under the tender, international LNG trading companies have been invited to offer one cargo for delivery between December 14 and 16 and another between January 9 and 11. PLL will evaluate the bids on technical and commercial grounds before placing orders, while retaining the right to reject all offers.
The procurement comes amid a sharp rise in international LNG prices, reportedly reaching around $32 per million British thermal units (MMBtu). After factoring in insurance, war-risk surcharges, freight and port handling charges, the delivered cost is estimated at $33.50 to $34 per MMBtu.
Procurement at these elevated prices could substantially increase the cost of electricity generated through regasified liquefied natural gas (RLNG), potentially adding to the financial burden on consumers.
Pakistan’s estimated LNG requirement stands at nine cargoes for December and 11 for January. However, growing security concerns surrounding the Strait of Hormuz have complicated procurement plans, with authorities seeking to arrange between eight and 10 cargoes for each month.
The extended bidding deadline is expected to provide international suppliers with greater flexibility and improve competition as Pakistan seeks to secure LNG supplies ahead of peak winter demand.
Story by Khalid Mustafa
