ISLAMABAD: PetroChina International Singapore has offered the lowest commercial price in a Liquefied Natural Gas (LNG) tender floated by Pakistan LNG Limited (PLL) for the supply of LNG cargo to Pakistan in the month of February 2020, Pakistan Today has learned reliably.
According to an evaluation report issued by PLL on Wednesday, four international commodity supplier including Gunvor Singapore, Trafigura Pte Limited, SOCAR Trading (UK) Limited and PetroChina International Singapore have offered their prices for the supply of LNG cargo to Pakistan in February 2020. And, out of four commodity supplier, PetroChina International Singapore has offered the lowest price for an LNG cargo in a tender which was floated by PLL.
As per details, the offer of PetroChina International Singapore was at 8.59 per cent of Brent crude oil price, while Gunvor Singapore offered 8.68 per cent of Brent crude oil price, Trafigura Pte Limited offered 9.77 per cent of Brent crude oil price, and SOCAR Trading (UK) Limited offered 9.33 per cent of Brent crude oil price.
Earlier, PLL floated a spot tender for procurement of a cargo in February 2020 and invited bids from reputed international suppliers for the supply of LNG through a master sale and purchase agreement (MSPA) and deadline for submissions of the bids was 17 December 2019, 1400 hours (PST) while date of announcement of bid evaluation result was 18 December 2020.
Similarly, PLL was to evaluate each commercial offer based on the lowest percentage of Brent (as defined in section 4.7.1 of the bid document) offered by any compliant bidder for that LNG cargo. Moreover, delivery of the first LNG cargo will be on 16-17 February 2020.
According to bid documents, PLL shall have the right at any time to cancel this tender process or to reject all bids in accordance with Rule 33 (1) of PPRA Rules. In case of cancellation of the tender process in whole, the bid bond will be returned to the bidder within five business days of such cancellation without any interest or accrual thereon. Similarly, the bidder was required to provide the expected identity of the relevant loading port along with seller’s facilities and the expected departure date of the LNG carrier from the loading port (as defined in the MSPA). Likewise, it was necessary for the bidder to provide the name of the LNG carrier it proposes to use for the delivery of the LNG cargo, its dimensions and volumetric cargo capacity, the applicable boil-off rate and the heel the bidder is proposing to retain after unloading of the LNG cargo.
“The Bidder shall confirm to PLL in writing the final location of the loading port, the identity of seller’s facilities and departure date from the loading port of the LNG carrier proposed to be used to transport that LNG cargo,” said the bid document.
Bid document further discloses that delivery of LNG cargo would be made at the PGPCL terminal (LNG) at Port Qasim, or on any other terminal as would be advised by PLL.
Pakistan LNG Limited (PLL) is a subsidiary of Government Holdings (Private) Limited (GHPL) which is owned by the Government of Pakistan. PLL has the mandate to procure Liquefied Natural Gas (LNG) to meet the country’s gas requirements.