The Pakistan LNG Limited (PLL) has decided to procure an LNG cargo at the highest ever price of $30.6 per million British thermal units (mmbtu) in a bid to avert the looming gas crisis in the country.
According to a local media outlet report on Sunday, the state-owned company had issued an emergency tender on November 2, seeking bids for spot cargoes after two LNG trading companies, ENI and Gunvor, backed out of providing two LNG term cargoes due to be delivered on November 19-20 and November 26-27.
The report claimed that the PLL received five bids with higher prices ranging from $29.8966 to $31.0566 per mmbtu from international LNG trading companies for two spot LNG cargoes to be delivered in the last 11 days of the current month.
The PLL has decided to buy an LNG cargo at $30.6 mmbtu, while efforts are underway to buy one more LNG cargo to meet the gas demand in the country.
Meanwhile, efforts are also underway to convince the LNG companies who have backed out of signed agreements with PLL to review their decision in the face of skyrocketing gas prices in the international market.
A day earlier, PLL had received five expensive bids for emergency LNG cargoes ranging from $29.8966 to $31.0566 per mmbtu from international LNG trading companies for two spot LNG cargoes.
The country had gotten the lowest bid for November 19-20 from Vitol Bahrain at $29.8966 per mmbtu and for November 26-27 from Qatar Petroleum Trading at $30.6500 per mmbtu.
It may be mentioned here that Pakistan Peoples Party (PPP) senior leader Mian Raza Rabbani has called for a judicial inquiry into the recent LNG scam, saying that Pakistan is moving towards a gas crisis due the government’s incompetence and non-transparent policies.
“There will be shortages and increase in tariff in winter due to the new LNG bids ranging from $29.89 to $31.05 per MMBTU,” he said.
