ISLAMABAD: Pakistan LNG Limited (PLL) has reissued a tender for the purchase of a liquefied natural gas (LNG) cargo for delivery between September 12 and 16, after rejecting two earlier bids because of high prices.
In its first tender, BP Singapore emerged as the sole bidder, offering LNG at $26.90 per million British thermal units (MMBtu) for delivery during September 4–8. PLL rejected the offer as too expensive.
The company subsequently floated a second tender for a September 8–12 delivery window. BP Singapore again emerged as the sole bidder, reducing its offer marginally to $26.7128 per MMBtu. PLL, however, rejected the bid, considering the price still too high.
The latest tender comes amid a shortage of regasified LNG (RLNG) that has contributed to prolonged electricity outages across the country.
Well-informed sources said the shortage emerged after PLL was forced to procure RLNG from the spot market following the suspension of its contracted gas supplies from Qatar due to a force majeure situation.
The delayed arrival of an RLNG cargo further aggravated the fuel shortage and adversely affected electricity generation, particularly from RLNG-based power plants in Punjab.
Last week, the Power Division indirectly held the Petroleum Division responsible for prolonged load-shedding, attributing the electricity shortfall to insufficient RLNG supplies needed to operate three RLNG-based power plants in Punjab.
The federal government subsequently apologised for increased nighttime load-shedding, explaining that the non-availability of contracted LNG from Qatar had left power plants with a combined generation capacity of around 5,000 MW unable to operate.
The latest LNG tender is therefore being closely watched as the government seeks to restore adequate fuel supplies and improve power generation availability amid ongoing electricity shortages.
Story by Wasim Iqbal
